MEXICO – Selectmen approved raising all property values by 20 percent to bring them up to state value at their meeting Wednesday.

This is the third time such an across-the-board action has been taken in recent years, Town Manager John Madigan said Friday.

The town is currently conducting an in-house complete revaluation which, when done, will more closely align town value with the state’s valuation.

The increase in property values was made as a preliminary action to setting the 2008-2009 tax rate.

If residents approve taking $50,000 from surplus at a special town meeting set for 6 p.m. Aug. 27, Madigan said the new tax rate could be about $23.65 per $1,000 valuation, compared with this year’s rate of $25.65.

An exact figure will be determined at the selectmen’s meeting that follows the special town meeting Aug. 27.

Town and state values must be the same so that the full amount of the homestead exemption, veterans exemption and tree growth can be applied.

Payment for the first half of property taxes is due in October. The second half must be paid in April.

Also at this week’s meeting, the board granted the contract for extensive construction work to 1,100 feet of Swett Avenue and 1,150 feet of Ledgeview Street to C.H. Stevenson Inc. of Wayne for $253,993. Some of that money will also be used to lay binder on Carleton Avenue and Flood Street once new water lines are installed.

The major part of the road project is expected to begin by the end of this month and be completed by the end of October. The final paving of all four streets will be done next year.

Selectmen also approved a purchase and sale agreement with Iron Mountain Management Corp. of Lawrence, Mass., for the acquisition of a new bridge that connects Dixfield and Mexico. It is known as Thad White Bridge. It will cost $110,000.

The total cost for installing the one-lane, 90-foot span over the Webb River is expected to be about $265,000. The Maine Department of Transportation is expected to pay about half the cost. The towns of Dixfield and Mexico will pay the other half, with Mexico borrowing the funds. Dixfield is expected to make payments for its share to Mexico.

More details will be worked out before the final papers are signed, Madigan said.

If all goes as expected, the new bridge could be installed late this fall.