ST. GEORGE – As the population grows along the peninsula, so do the pressures on town personnel and services.

For the first time in recent years, town officials are taking a serious look at ways to best direct development and town services in the future.

Unlike surrounding towns of similar size, St. George has managed to operate with a leaner budget by providing limited or no services.

Now that St. George has been discovered, building permits are multiplying and houses for sale are becoming harder to find because they sell so quickly.

“Last year, inventory was high [as were sales],” said resident Irene Rizkalla, who sells real estate for ERA Cousens Realty. Rizkalla said that there is “much less to choose from this year. Pickings on the waterfront are very, very slim.”

The 1998 estimated U.S. Census figure placed the population of St. George at 2,513, according to figures published by Knox County Commissioners recently. The latest figures from the 2000 Census are not yet available, but Rizkalla believes there has been a marked increase.

As more people settle into the various villages of the peninsula community, St. George’s valuation continues to climb at a faster rate than its population, Town Manager John Falla said.

The 11 villages of St. George are: St. George (also known as Wiley’s Corner), Tenants Harbor, Port Clyde, Clark Island, Martinsville, Willardham, Long Cove, Glenmere, Ellmore, Wallston and Spruce Head.

The downside of the high valuation is that the town is assessed a higher percentage of the school and county taxes, Tim Polky, assistant to the town manager, said Wednesday, which makes it difficult for natives who plan to stay in town. The high valuation also makes it harder for the town to obtain grants, especially from the state, he said.

The flip side of the state’s assessment is that people who have homes to sell are getting top dollar, Polky said.

According to Falla, October home sales show that the recently updated town assessment of houses is quickly falling behind market values.

A home on Rackliff Island, which was assessed at $541,000, sold for $862,000, Falla said. A few other waterfront properties that sold recently included one that was assessed for $176,000 and sold for $306,000; one assessed at $102,000 that sold for $219,000 and another that the town valued at $283,000, which sold for $415,000.

Even inland house sales showed spikes between assessed value and market price, he said.

The attraction to live in St. George seems to center around a simpler way of life and a lower tax rate.

“St. George is a pretty great place to live,” Rizkalla said. “The schools are great.”

During the last decade or so, Rizkalla has concluded that the people drawn to the 15-mile long peninsula are “eager to become part of the Maine way of life.”

The influx of residents – many who have moved here from outside the state – are people who have worked hard in other places, she said, and either wanted to return home, if they grew up here, or were searching for a nicer way of life.

Looking as far back as 1992, the number of building permits issued for new homes has shown a fairly steady increase to date. There were 23 permits given out in 1992 compared to 40 permits as of Oct. 31 this year. In 1999, there were 31 permits for new homes.

The combined estimate of value for new homes, mobile homes and miscellaneous building permits has more than doubled in that eight-year span. In 1992, the estimated value was $3,585,990. For 2000, the figure was $7,947,997 as of Oct. 31.

Another difference over the years is that, to date, 2000 is the first year there have been no requests for mobile homes.

Polky, who also serves as the town’s code enforcement officer, said that the two towns in Knox County which appear to be growing the fastest are Warren and St. George. The difference is that Warren is seeing mostly double-wide modular homes, while St. George’s requests are for $500,000 to $750,000 homes, he noted.

“Our tax rate is lower than other places and that’s one of the drawing cards,” he said.

The tax rate for 2000 is $12.10 per $1,000 of assessed value.

One of the effects that growth is having on the town is the need to consider some services that have never been provided or expanding those services that are currently in place.

Rather than have a public works department, St. George has contracted out related work. The town has had constables at different times, but has not had a police department.

Those are some of the issues that will be discussed in coming years, Falla said, noting that the idea of contracting with Knox County Sheriff’s Department to have a deputy stationed in town may soon be a topic of discussion.

At a special town meeting last week, voters turned down a proposal for a new fire station in the village of Tenants Harbor. It was not that residents felt there was no need for one, but rather that they wanted more information and options to make a more informed decision.

The town has three fire stations, located in Tenants Harbor, Port Clyde and off Route 73 in St. George.

The town is also facing growing pains at its transfer station.

In the 2001 budget, the town manager is proposing setting aside $100,000 each for a fire station and $75,000 for the expansion of the transfer station. Falla said that these are items that are simply up for discussion and may not be supported by selectmen, the budget committee or voters.

The transfer station expansion is expected to cost about $750,000, but the operation could provide “one-stop shopping,” Falla said, noting plans call for a recycling center, trash deposit, can and bottle redemption and a secondhand shop.

As the town heads a little farther into the new year, other considerations are adding to the town office staff, updating the comprehensive plan, looking closer at local educational options and finishing the re-addressing of homes for emergency calling purposes.

As far as town office staff, Falla said an administrative assistant for special projects is under consideration for 2001, as well as re-creating the code officer job as a full-time position and making the recreation director full-time.

One of the biggest perks of living in St. George is a completely free, volunteer ambulance department – a bonus that may not last forever, he said, noting it is a separate entity from the town and is supported by contributions.

With plenty on the table already, another task the town must face is developing a building code, Falla said.

Considering that St. George ranks fourth in valuations of Knox County towns and that it could easily be second in line within a year or two, it is time to start drafting those codes, he said.