PHILLIPS — Property owners will see a significant increase in their tax bills next week to pay for road improvements.

Selectmen discussed ways to avoid a tax rate hike from $16.20 to $20.80 per $1,000 of valuation. For a property valued at $100,000, the tax bill would go up $460.

On Tuesday night, selectmen agreed unanimously but reluctantly that they were required to follow residents’ mandate to raise money to fix town roads. With no other revenue sources, the only way was to increase taxes.

“We’re doing (the work) ourselves, so we’re hoping to keep the cost down,” Town Manager Elaine Hubbard said.

Roads must be maintained to minimum Maine Department of Transportation safety standards, and some roads no longer meet those standards.

Hubbard said the Pinkham Hill Road requires repairs but will not be paved this year. Paving on Tory Hill Road can’t be postponed, she said.

Although the tax increase will hurt everyone, money was appropriated at the town meeting, and selectmen can’t take money from other accounts to pay for the repairs.

“We have to be sure we have enough to pay our bills,” Hubbard said.

Taxpayers will be responsible for raising $195,000 of the $300,000 appropriated for road repairs, Hubbard said.

There is about $14,000 left from the Federal Emergency Management Agency funds from Tropical Storm Irene, Hubbard said. “We have to make sure those road projects are completed, and maybe we will have some left to put toward these projects.”

State funding can be used, although the town’s share will be less this year. The state’s total budget for Local Road Assistance is about $556,000 less than last year, which is approximately a 10 percent reduction to the town.

The $45,780 from state funds, plus undesignated town funds, will help ease the burden, but the remaining $195,000 will have to come from taxpayers.

“So I guess we have to do it,” Selectman Ray Gaudette said.

The tax bills will be mailed by Friday, Hubbard said.