NORWAY – Assessor Jodi Keniston told selectmen Thursday night that Norway needs to increase the valuation of its housing stock – particularly waterfront property.

“Our values are way behind market,” Keniston said. “I made a serious decision this year to bring things as close to market value as possible.”

Although Keniston said it’s not a formal revaluation, property owners will see a change in their values, some much more than others. The town had its last revaluation in 1990. Keniston said that with the increase in assessed value, the mill rate should drop so that many people may not see a big difference in their tax bills.

According to Keniston, market values have jumped in the past five years and although she has increased valuations on an annual basis, it has not been enough to satisfy the state.

The new property valuations will vary, she said. Older houses that normally have cosmetic changes but no structural changes, are harder to assess and may not see a big difference in their assessment, she said. However, a waterfront property whose selling value has jumped significantly in the past five years will probably see the largest hike.

“There will be a significant change in waterfront properties this year,” she warned.

According to a sales analysis report of property sales from 2005, 2006 and 2007 Keniston provided the board, lakefront properties show a valuation often half or less of the selling price. For example, one lakefront property is assessed at $47,300 but its selling price was $189,000. Another was assessed at $150,400 and its selling price was $470,000. A third was assessed at $368,400 with a selling price of $770,000.

In-town properties appear to be closer in assessments to their selling price, most having a selling price well under $200,000 with assessments fairly close in many cases.

Selectman Bruce Cook, who is president of the Lakes Association, said he will bring the information to the association at a meeting this week, but he fears for some of the older lakefront owners who live on fixed incomes and may be forced to sell their homes if taxes rise too high.

While acknowledging their plight, Keniston said there are also cases where people have been able to use their properties to make huge profits.

“This is necessary work that needs to be done. We have to answer to the state of Maine and the taxpayers. Both want different things,” said Town Manager David Holt.

“There’s no easy solution,” agreed Cook.