FARMINGTON — Selectmen settled on a tax rate at $16.02 per $1,000 of valuation Tuesday after differing on whether to raise taxes this year.

The rate is 7 cents more than last year’s $15.95.

Suggesting a rate of $16.08, assessor Mark Caldwell told the board the amount means no funds would need to be taken from the town’s undesignated fund balance to help run the town.

To keep the rate the same as last year would require $54,000 be taken from undesignated funds.

The town has been advised by auditors to keep two months worth of expenditures in the fund, Town Manager Richard Davis said. 

When asked about other similar communities, Davis said the rate of $16.08 was favorable. For other service centers like Farmington, the rate can average from $19 to $30. Farmington also has to deal with a large amount of tax-exempt properties.

Department heads have run a tight, lean ship to help keep the tax rate down, Davis said.

Although the fund is set up for a rainy day or unforeseen problems, Selectman Ryan Morgan told the board, “It’s a hard time to say yes to an increase of taxes.”

Noting the insecurity of what’s happening in Washington this week with the federal budget talks and in light of small increases anticipated from the county and school department, he said he couldn’t favor the higher rate.

“It’s a scary time and not a good time to raise taxes,” he said.

Selectman Dennis Pike agreed. “At some point, we have to draw a line in the sand,” he said.

Selectman Jessica Berry favored the increase rather than withdrawing from the undesignated fund in case of future needs or emergencies.

Chairman Stephan Bunker agreed with her.

Selectmen Andrew Hufnagel was absent from the meeting.

When Morgan moved to keep the tax rate the same as last year, he and Pike voted yes and Berry and Bunker, no.

Then Berry moved to increase the rate to $16.08. The vote was also a tie with Berry and Bunker voting yes and Morgan and Pike voting no.

Realizing a compromise was needed, the board decided to split the amount needed from the undesignated fund. Morgan suggested an amount of $26,000.

Finally with Morgan, Pike and Bunker voting yes to the amount and Berry against, the board approved taking the $26,000.

Caldwell refigured the rate and returned with a rate of $16.02.

The board then voted 3-1 to approve the rate.

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