LIVERMORE FALLS — Selectmen set the tax rate Monday at $20.80 per $1,000 valuation, which is 20 cents less than last year, Town Manager James D. Chaousis II said Tuesday.

With a $34 million change in real estate value associated with the Wausau Mill closing and a more than $800,000 drop in municipal appropriations, the board kept the rate under that of last year, he said.

“Although the municipal tax rate is elevated compared to other towns, it’s a success to keep it close to last year and still find savings for next year,” he said.

Municipal appropriations dropped from $2.7 million last year to $2.1 million this year, he said. A tax increment financing agreement associated with the mill also attributed to the decrease in appropriations for this year by $299,000, he said.

Tax bills will be sent within the next week or two and the first payment is due Oct. 20. The second payment is due March 23, 2011.

Although the tax rate is lower, many may see a slight increase in their bill due to the reduction in the state Homestead Exemption from $13,000 last year to $10,000 this year, he said.

Last year, with the homestead exemption at $13,000, a resident with a property valued at $100,000 would pay local taxes based on $87,000, but this year it will be on $90,000, he said.

abryant@sunjournal.com