MEXICO – Nearly 1,700 property owners will begin receiving their tax bills next week.

Selectmen on Wednesday set the new rate at $25.65 per $1,000 valuation, up $2 from $23.65.

Town Manager John Madigan said the increase can be attributed to higher than anticipated school costs as well as a 2.5 percent salary increase for municipal employees, higher utility costs, and money for engineering road construction for Swett Avenue and several tiny streets in the Swett Avenue area, and Mexico Avenue.

Residents have until Oct. 26 to pay the first half of their property taxes without penalty, and until March 7 to pay the second half.

Late payments are subject to an 8 percent penalty.

Also on Wednesday, the board accepted the resignation of Randy Canwell from the SAD 43 board.

Madigan said officials are looking for someone to replace him until the June 2008 election.

Marlene Gile was reappointed as a Mexico representative to the River Valley Growth Council.

After a public hearing, selectmen voted to change traffic on Hill Street to two way. It had previously been one way because of the narrowness of the street. Madigan said Hill Street will be closed during the winter months, beginning with the first snowstorm.

The next regular meeting of the board is set for 6:30 p.m. Sept. 19.