LIVERMORE FALLS — Residents voted Tuesday to use $100,000 from the undesignated fund balance to keep the tax rate to a 60-cent increase for 2020-21.

The money from surplus means a tentative rate to $23.20, or 60 cents more per $1,000 of assessed property value. Without the surplus, the rate could have been more than 60 cents.

The vote was by a show of hands with four people opposed. The unaudited amount in the undesignated fund balance is about $1.9 million, interim Town Manager Amanda Allen said. Auditors recommend having three months worth of town operating expenses in the fund, she said.

Though not officially voted on, selectmen signed the commitment papers for the rate. The amount includes an overlay of $43,416.68 to cover any tax abatements. If that money is not used, it would go back into the general fund next year.

By using the $100,000 from surplus, a home valued at $100,000, after factoring in the $25,000 homestead exemption, would be taxed $68 less than last year, Allen said. If the$100,000 was not used, the tax bill would have increased about $60.

As of April 1, 2020, the homestead exemption increased $20,000 to $25,000.

The tax bill for a $100,000 home would be $2,320 without the exemption. However, after reducing the value by the $25,000 exemption the bill would be about $1,740.

Factoring in the exemption for a house valued at $75,000, the tax bill would be $1,160.

Maine’s Homestead Exemption provides a measure of property tax relief for certain individuals that have owned homestead property in Maine for at least 12 months and make the property they occupy on April 1 their permanent residence, according to the state’s website. Property owners would receive an exemption of $25,000.