Board gives town manager OK to seek tax anticipation note

RUMFORD — Deviating from their agenda at Thursday night's board meeting, selectmen convened two emergency sessions, the first of which seemed to come as a surprise to some in the audience.

The first session was to authorize Town Manager Carlo Puiia to apply for a tax anticipation note, to borrow money with which to run the town should it become necessary until tax revenue starts coming in.

The first tax payment installments from residents who don't pay all at once, aren't due until Nov. 16.

"We feel we won't have to do that this year even though taxes will be collected late, but we have made arrangements," Puiia said. "Looking to the future, it's wise for the town to have that tool, if you will, in place, because we will be coming back again on April 1."

"If we have any problems with the collection of taxes then, we ought to be prepared," he said.

In the recent past, Rumford hasn't had to borrow money in anticipation of taxes, Puiia said.

But then, no one anticipated a 22.5 percent tax hike this year, due to a multimillion dollar drop in valuation of the town's two biggest taxpayers, the NewPage Corp. paper mill and Brookfield Power, a hydroelectric company.

Puiia said he and selectmen believe the town is OK at the moment. However, they're worried about possible delays in collecting taxes.

"You can borrow money based on the fact that you can anticipate collecting taxes," Puiia said.

Selectman Robert Cameron then motioned to authorize Puiia to pursue securing a tax anticipation note as needed between now and June 2010.

"This isn't the first time we've ever done this," Cameron said. "We've never done one since we've had the two-payment system. Previous to that, we did them every year."

The board then voted 5-0, approving the motion.

Selectmen's Chairman Brad Adley then declared the need to enter a second emergency session to appoint one ballot clerk for the Nov. 3 election.

The board entered the session and appointed Barbara Doherty as the ballot clerk, before re-entering their regular session.

In other business that came up during the Request of Citizens Present section of the agenda, resident Candice Casey suggested a cost-savings measure by following the state's example of shutdown days to conserve money.

Casey asked the board to close the municipal office on each of the remaining six shutdown days, because Rumford District Court would be closed due to the state shutdown.

At a previous meeting, Selectman Greg Buccina suggested closing the municipal building to cut costs during the current budget crisis, but Puiia said that couldn't be done because the court had to remain open five days a week.

Not so, said Casey.

Adley then said the board and Puiia need to research how much money could be saved by remaining open for four out of five business days.

"Can we get by on only four days?" Buccina asked.

Cameron suggested also sending nonessential personnel home on the day that the municipal building is closed and only keeping police and fire employees on duty.

Selectman Mark Belanger said the board needs to act soon if it's going to follow through with its decision to cut 10 percent from the current budget.

"We're already a quarter of the way into the budget and we've spent 25 percent," Belanger said.

Puiia then said the board doesn't have to vote to close the building, because the town charter dictates who runs municipal government operations.

Without voting, the board then left the research work to Puiia and moved on with scheduled agenda items.

tkarkos@sunjournal.com

RUMrumselP1016.jpg
Terry Karkos/Sun Journal

Terry Karkos/Sun Journal
During Thursday night's Rumford Board of Selectmen meeting, Selectman Mark Belanger, left, listens while Selectman Greg Buccina tells Town Manager Carlo Puiia why he disagrees with spending $2,100 to create a commercial property marketing plan for a housing block on Lincoln Avenue and Waldo Street. Belanger countered Buccina's opposition, saying the board needed to aggressively market the property for redevelopment, and the board followed suit, voting 4-1, with Buccina dissenting.

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Displaying comments, from newest to oldest

cderaps's picture

The Blue Ox Bandits have

The Blue Ox Bandits have struck again. Though directing department heads to save 10% of their budgets at their last meeting four of the selectmen voted to waste more than $2100 in economic development funds on a study of the block across from Hannaford. (Thank you Mr, Buccina for arguing and voting against this waste.) The selectmen hired a consulting firm to take pictures and collect information on sewerlines, the current owners and such of the properties on the block in case someone might at some point be interested in developing the block for a mall or such. Yes these are all mights, someone completely unknown now, at some time in the future, who has any idea whens, not to mention there are going businesses with good jobs on the block and good buildings with people living in them. (The two worst buildings it turns out the selectmen have been holding on to hoping to make money on but leaving standing as an eye sore including one of the worst buildings in town right across from Hannaford where every visitor sees it.) I don't drive at night so I thank my friends for keeping me informed. I used to watch the meetings on cable but gave up cable because of the economy. Social Security announced that we seniors will not receive our COLA next year and "will have to skrimp," my property taxes are going up 25% this year thanks to the Blue Ox Bandits, I have no idea where that money is going to come from and they are still spending like it grows on trees.

I called this Candice Casey. She has been trying to save us money even make us money with recycling and getting no cooperation at all from the Town Manager and Selectmen. She is so frustrated she is giving up and moving on sooner to the next project community and I can not blame her. We need people like her with ideas and who will also do the work like she has been trying to do. The Town Manager, Selectmen and departments should be working with these volunteers and be grateful for them. Either way they have to stop spending what we haven't got.

dandee84's picture
verified

The selectmen new before

The selectmen new before town meeting that the town assessment would be drastically reduced with major reductions pending for both NewPage and Brookfield but did not make adjustments to the budget or inform the people. The people are then saddled with the highest property tax rate in the state at $24.40 per $1000 of valuation. Then the selectmen pass a non-binding motion direction department heads to save 10% of their budgets. Then they are forced to hold a special town meeting because the tax bills have not been able to be sent out because of the delays in settling the assessed values of the mill and power company and have no choice but to extend the due date of the first half of taxes. After all it would not be fair to have the payment due weeks before the amount due is determined or the bills sent. And since we are all getting slammed with an unprecidented nearly 25% increase in taxes the selectmen have generously decided we should not pay 9% interest in what we cant pay on time because we were not informed of the impending financial problem dispited their knowing a year ago or so but only 5%. Last night the board declared an emergency so they could put a critical item on the agenda that was not publicized, authorizing the Town Manager to take out loans called tax anticipation notes. These are loans to cover expenses of day to day operations while waiting for people to pay their taxes. This is a problem this year, the first time since we switched to a two payment per year system because the bills are going out late and the selectmen expect so many not to be able to pay and sueprise surprise the spending is right on schedule. We are 25% into the year and 25% of the towns budget has been spent. There has been no, zero, not a savings. Isn't that amazing.

There have been several attempts at specific suggestions to save money and the Town Manager and majority of the board have killed them all. As the article above stated Greg Buccina first brought up shutdown days and the town manager killed that plan claiming court contract. Last night Candice Casey brought in good information on the state shutdown days which include the court and suggested we take the same days, more excuses. Rejuvenating recycle would actually make money but the town manager has been refusing to release recycling bins. The list goes on and on. The squeeky wheel gets the greese and we must squeek by calling the selectman and town manager and demanding they save our money.

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