FAIRFIELD — The Town Council voted this week to reduce the property tax rate and set a special election for municipal races in November.

Councilors voted Wednesday to use $150,000 from undesignated funds to offset the tax rate, as required by articles passed at the Town Meeting in May.

Residents at that time approved an article to use $450,000 for paving, with the stipulation $300,000 come from automobile excise taxes and $150,000 from undesignated funds. The $150,000 would essentially be used to offset the tax rate, but still be spent on paving, rather than the town having to raise the amount through taxation.

The council could have used up to $400,000 from undesignated funds to offset taxes, but Town Manager Michelle Flewelling said there were concerns that taxes will increase next year, and councilors decided to take a conservative approach so the rate does not decrease this year only to increase dramatically next year.

This means the property tax rate will be 2.1%, or $21 for every $1,000 of assessed valuation. Under that rate, a property valued at $200,000 would be taxed $4,200, a slight decrease from last year, when the rate was 2.2%.

Councilors also scheduled a special town meeting for Nov. 8 for the annual municipal elections, at which residents are to fill a seat on the Kennebec Water District board of trustees, now held by Mark McCluskey, and two seats on the Town Council, now held by Stephanie Thibodeau and Michael Taylor.

Nomination papers are available and must be completed and returned to the town clerk by Sept. 9 to place a candidate’s name onto the ballot.