MOUNT VERNON -- Residents will see a 7 percent property tax increase in bills arriving later this month.

Selectmen voted to set the tax rate at $11.50 per $1,000 of assessed value despite concerns about further reductions in revenue in 2010 and how best to cushion the blow for taxpayers.

Budget Committee Chairman Charlie Baeder said the town will likely see another increase next year if the referendum on reducing vehicle excise taxes paid to towns is successful in November. And he said the state's inability to pay their portion of school funding could translate into a "double hit" for taxpayers.

Lacking concrete information about upcoming changes, selectmen voted 3-0 to hold the line at the increase quoted to taxpayers during June's town meeting.

In other business, selectmen:

* Approved a set of procedures for the town's public access cable television station.

Following a unanimous vote, Selectman Clyde Dyar said he had no further issues with the airing of shows taped by Rep. Pat Jones, D-Mount Vernon, on the impact of legislative action on local towns.

* Reviewed the town's policy for seeking bids after Dyar asked a representative of the Community Center Board of Trustees to attend the meeting to discuss the committee's latest project at the historic building. Dyar said he was comfortable with trustees' decision but wanted to be informed about the project to install storm windows and the town's bid process.

Selectman Russell Libby outlined the current policy which requires all town departments to seek three bids by phone for any project over $500, and in writing for projects exceeding $1,000.

Community Center trustee Wanda Morse presented three written bids and said the committee had chosen the lowest bid of $1,400 to install storm windows on one side of the building.

* Discussed how to handle the expense of road repairs required following heavy rains in June.

Selectmen disagreed about whether to pay for the repairs in the budget year in which costs were incurred -- resulting in an overdraft -- or to pay the bill out of the current budget year which began July 1.

Treasurer Marti Gross said towns are legally allowed to overdraft road maintenance accounts by up to five percent as a circuit breaker for emergencies. Selectmen said they would research the issue in advance of the next meeting on July 22.