HERMON – Town officials voted Thursday to set the mill rate at $15.70 per $1,000 of valuation, slightly up from last year but 1 mill lower than originally expected.

A 10 percent increase in this year’s valuation, mostly because of construction of new homes, helped to keep the tax rate lower than anticipated, according to Town Manager Clint Deschene.

“I’m extremely pleased with the mill rate,” Deschene said during Thursday’s Town Council meeting. “We’ll be the lowest of the top 10 towns in Penobscot County.”

Of this year’s $12 million budget, approximately $4, 667,000 must be raised through taxes, he said.

All of the five councilors present voted in favor of the new rate, which would be voided if the controversial tax cap initiative were passed on Nov. 2. Commonly known as the Palesky plan, the initiative would scale back assessed property values to their 1996 level and cap property taxes at $10 per $1,000 of valuation.

Deschene praised the councilors’ decision not to hike the mill rate substantially, as he said other towns have considered in order to hoard money for possible post-Palesky shortfalls.

“I think that’s an exact wrong reaction,” he said, adding that statewide tax reform is likely even if the initiative fails.

In other business at Thursday’s meeting, councilors:

. Listened to a local couple’s complaints about dogs barking at a Swan Road animal shelter.

. Tabled a motion to set aside money for plans to renovate the middle school.

. Met with snowplowing contractor Louis “Buzzy” LaChance, who promised the town’s roads would be plowed if the Palesky initiative were passed.

. Canceled the regularly scheduled council meeting on Thursday, Oct. 21.

The next council meeting will be held Thurs, Nov. 4.