MEXICO — Selectmen on Tuesday approved holding a special town meeting Tuesday, Sept. 6, to get comments on the tax rate. It will begin at 6 p.m. downstairs in the Town Hall.

Town Manager John Madigan went over three sheets of figures with the board and recommended increasing the rate to $27 per thousand dollars of assessed property value. He said the increase is because of the Regional School Unit 10 budget and the loss in value 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 $67,000, “most property owners will get a tax reduction.”

The special town meeting will also seek approval to allocate $175,000 from the surplus account to lowering taxes. 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.

Immediately after the special town meeting, selectmen will hold a regular meeting to set the tax rate.

Board Chairman Richie Philbrick said that last Thursday, following a brief executive session, the board voted unanimously to seek their own town manager.

On Aug. 4, the Rumford Board of Selectmen voted unanimously to pursue their own town manager.

Both towns have been sharing Madigan for more than two years, but he is retiring and running for the Legislature.

Both boards voted earlier to extend Madigan’s contract to Jan. 1, 2017, to give them time to decide on his replacement.

Both boards have voted to contract with David Barrett of the Maine Municipal Association to assist with the town manager search process.

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