ST. AGATHA – Selectmen set the 2006 municipal property tax rate at $18.75 per thousand in property valuation, a decrease of 50 cents per thousand.

Last year’s tax rate was $19.25 per thousand. For the homeowner with property valued at $100,000, the decrease will amount to $50 for 2006.

Tuesday night’s decision was made after all expenditures, including the town’s share of SAD 33 expenses and the town’s share of the Aroostook County budget were added to the municipal budget approved last March by residents.

Town Manager Ryan Pelletier said Friday the lower tax rate is due primarily to three reasons: lower cost for education by about $21,000; increased local valuations, up by $950,000; and increases in state money and excise tax collections of about $10,000.

The town’s budget approved by voters amounted to $749,087, an increase of about 10 percent from last year, according to Pelletier. The increase was listed at about $66,000 at town meeting time.

“The new mill rate of $18.75 is about where we were in 2003-2004,” Pelletier said. “I think that is significant, given the fact that the town’s budget, including school and county taxes have increased over the same period.”

Pelletier said the town’s increased valuation is due to new home construction, but also to additions made by residents during the past year. In total, it amounted to nearly $1 million.

“Every little bit helps,” he said Friday.

Pelletier said taxpayers should be receiving their bills sometime late next week. The bills are payable on demand, however taxpayers have until Oct. 30 to pay the bill without added interest.

Pelletier said he didn’t know how tax money would come in, noting that during budget preparations last spring, a discount on paying taxes early was eliminated in an effort to save money.

This year is experimental, he said. The Board of Selectmen and the budget committee will review the cost of the measure after this tax year is completed.

In other business Tuesday night, the Board of Selectmen approved a $90,000 paving schedule for the coming months.

Selectmen decided to pave a 1.1-mile section of Flat Mountain Road, use chip seal on six-tenths of a mile of Morneault Road as well as 1.4 miles of Chasse Road.

A special town meeting will be held in July to seek the money to pay the paving projects.