MECHANIC FALLS – Property taxes will not be going up this year following town council action this week that set the rate for 2006-07 tax bills at $18.90 per $1,000 of value.

Town Manager John Hawley said an increase in the value of the town’s taxable property and an increase in other revenues kept the tax rate level despite the fact that voters at May town meeting approved spending more money than they did a year ago.

Immediately after the May 20 town meeting, the tax rate was projected to rise about 40 cents per $1,000 to $19.30.

Hawley also told the council that an end of the fiscal year review of spending revealed that the town had spent more than town meeting voters had approved.

“Total spending was a little lower than 1 percent more than voters approved,” said Hawley.

Hawley said unexpected hikes in energy costs led to the overspending. As a result, Hawley said, the council would have to call a special town meeting to gain after-the-fact voter approval for the overspending.

The council agreed to hold a special town meeting at 6:30 p.m. Tuesday, Sept. 5, in the council room at the Municipal Building.

Hawley noted that the town had used additional, non property tax revenues, to cover the overage, and therefore the special town meeting voters would not raise any new money but rather would be asked to approve the spending that actually occurred.

Hawley also announced that nomination papers for the charter commission will be available Aug. 14 and must be returned no later than Sept. 8. Six people will be elected to the commission at the November elections. After the election, the Town Council will appoint three additional people to the commission.

The charter commission will consider an amendment that would do away with the annual town meeting and replace it with referendum voting.

In other business, the council accepted CR & Sons’ bid of $10,204 to replace overhead doors at the Public Works Department, Nason Mechanical Systems’ bid of $19,422 for a new heating system for the fire station and Sean Dostie’s bid of $16,475 for a new police garage.

At Councilor William Diehl’s recommendation, work on the fire department/public works department roof was put off for a year.

Diehl said he had spoken with the fire chief, who has come to the conclusion that the roof needs a major overhaul, requiring about double the amount of money available.

The council agreed to immediately patch known leaks in the roof and to save the rest of the funds and add to that in the next budget so the roof can be done properly.

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