LINCOLN, Maine – Town leaders probably will not need to apply for a $500,000 tax anticipation note to cover the late billing of property tax bills and the school system’s late budget effort, officials said Wednesday.
“We might have to do it in March, but I don’t think so,” Treasurer Gilberte Mayo said.
The Town Council voted 6-0 on Nov. 5 to allow Mayo to seek the short-term loan from Machias Savings Bank for as much as $500,000 within 60 days of that date. The loan would carry a 0.99 percent interest rate. Councilor David Whalen was absent.
Councilors feared that the discovery of $1.2 million in errors in the town’s 2012-13 budget, and the late mailing of property tax bills fixing the errors caused, would create a cash shortfall that the loan would be needed to offset.
More recently, the failure of RSU 67’s budget to pass despite four referendums also created fears of a shortfall.
But tax bills for the first half of the fiscal year, which began July 1, went out in November, and taxpayer responses have been strong. The next property tax due date is May 15, so there is a chance that shortfalls could occur in March or April, Mayo said, but she doubted that would happen.
“It is not going to be as tight then as this particular situation was,” Mayo said.
The town had about $278,000 in cash, which is usually enough to pay four weeks of expenses, in mid-November. As of Wednesday, the town had $2.5 million in cash, Mayo said.
The latest school budget vote is scheduled for Jan. 10.
I guess I’m confused. They let Bill Reed go after they said he jumped to quick to judge their lack of funds and now they are lacking funds and may need a loan in January. Can someone explain. It appears there is problems with the accounting.
I thought during the election, the school budget had to have a bond or something, or the world would end, they did not get whatever they wanted, but, now things are going to be okay, Hmmmm, you cannot believe what is printed anymore.
does this have anything to do with the Boy Scouts missing cash?
in Lincoln money seems to move in ways that defy common sense.