MEXICO – The town received notification from the state this week that its value had risen by about $5 million, a figure that will ensure full eligibility for homeowner tax exemptions.

Town Manager John Madigan told selectmen Wednesday night that the value of Mexico’s real estate and buildings rose to $111.7 million in a preliminary state report. The previous value was $106.65 million.

“That means we’re 100 percent eligible for the veterans and homestead exemptions and for tree growth,” he said.

The value also figures into the property tax rate when the board completes its budget process and voters act on the budget in June.

Madigan began with a flat budget, which by itself would ensure that the tax rate of $23.35 per $1,000 valuation would remain the same. However, the amount of school taxes the town has to pay is uncertain. The Oxford County tax rose about $3,500 for the next fiscal year, bringing Mexico’s assessment to about $68,000.

Madigan said adding 20 percent to the value of every property last year helped bring state and town values in line. He said once a property revaluation is complete, he expects the town and state valuations to agree.

In other matters Wednesday, Chairwoman Barbara Laramee reported on the tour selectmen took of the SAD 43 central office building that will be returned to the town on July 1.

Laramee was impressed with the two-story former classroom building and sees potential for it. The building is on Recreation Drive adjacent to the former Mexico High School.

“It’s in pretty good shape,” she said.

She said the town will decide what to do with the building once it is turned over. The central office is closing because SAD 43 has joined with SADs 21 and 39 to form Regional School Unit 10. The RSU central office will be in Dixfield.

Selectmen will continue budget discussions at 6 p.m., Thursday with members of the Budget Committee.

Also on Wednesday, the board received five nominations for the dedication of the annual town report. A choice will not be disclosed until the report is issued.