GREENVILLE – A new tax rate that represents an increase of $1 per $1,000 property valuation was approved on Wednesday by selectmen.

In a 4-1 vote, the mill rate was increased from $19.70 to $20.70 per $1,000 valuation, which is slightly higher than was anticipated. Selectman Carroll Smith voted against the action.

“What we found was that the impact of the Homestead Exemption change was greater than we anticipated,” Greenville Town Manager John Simko said Thursday in explaining the increase.

He said town officials had figured that there would be a modest increase in total assessed value, but what happened was there was more loss of homestead funds than there was a gain in new construction, he said.

Simko said selectmen also approved an overlay of about $35,000, funds that are allowed by law to offset a 1 percent discount on taxes and abatements. Any funds left over lapse to surplus, he said. Last year, an assessor made an error that wiped out the overlay on one abatement and municipal officials did not want that to occur again, he said.

In another matter, Simko said an agreement is expected to be signed by selectmen next week that shifts the responsibility of the town’s snowmobile trail grooming program and the upkeep of the town-owned grooming equipment to the local snowmobile club.

The town has been responsible for grooming about 70 miles of the Interconnecting Trail System from Greenville to neighboring communities and has provided the maintenance for three town-owned grooming machines. But last season, the trails were not well maintained because of mechanical breakdowns.

Members of the Moosehead Riders Snowmobile Club verbally agreed last month to take over the responsibility of the town’s trails in addition to their own loop trails. Simko, who wanted assurances from selectmen that they were still in favor of the move, received it on Wednesday. He agreed to have a written operation and maintenance agreement ready for signing at next week’s meeting.

The town will continue to serve as the fiscal agent and will pay the bills and apply for grants, Simko said. The town also will retain ownership of the equipment and insure it. A trail grooming committee composed of representatives of the snowmobile club, the town and the business community will serve as an advisory group.

Simko expects that the trails will be good this year and that the program will be well-run, which will be proof to residents, the business community and snowmobilers that municipal officials recognize the importance of snowmobiling to the local economy.

“Hopefully, we’ll be able to step out and say all right, take a chance on us again, let’s do like we did last time and go after some grant funds and go after a general obligation bond and upgrade at least one of those pieces of equipment,” Simko said. “But we’re really not in a position to do that right now.”