MEXICO — The Board of Selectmen voted unanimously Tuesday to raise the 2016-17 property tax rate by $1, to $27 per $1,000 of assessed value, but most tax bills will not go up, according to Town Manager John Madigan.

The vote followed a special town meeting in which residents voted 9-2 to allocate $175,000 from the undesignated fund balance to reduce the 2016-17 tax commitment. There is $587,000 in the account.

“What remains in surplus, combined with revenues that come in, provides the town with the cash flow needed to pay their monthly bills,” Madigan said. The remainder is between the recommended 10 to 15 percent of the budget.

He said the increase is because of the Regional School Unit 10 budget and the loss from an increase in the Homestead Exemption.

“The impact of a $5,000 exemption on a residential property means that even with a ($1) tax rate increase, all properties under $140,000 in value will receive a tax bill less than what it was last year,” Madigan said. “That’s the value of a $5,000 reduction in your property value.”

Because the average property value in Mexico is $69,222, “most property owners will get a tax reduction.”

Madigan said there are an estimated 1,500 taxpayers in Mexico.

At $27, the average tax bill will be $1,868. Of that amount, $1,034 is to operate the town, $766 is for schools, $49 is for Oxford County, and $19 is for overlay.

bfarrin@sunmediagroup.net