MEXICO – Selectmen decided against taking a stand on the Palesky tax-cap initiative Wednesday night. Instead, they agreed to send two newsletters to residents explaining both sides of the issue.

Town Manager Joseph Derouche argued that passage of the controversial bill would result in a $1.2 million loss in property tax collection, an amount, he said, that could force the town into a merger with another town, or eliminate most of the town’s services.

“We are one of the most dependent towns in the River Valley,” he said, adding that with the bill’s passage, the towns in the River Valley would lose more than $9 million.

Selectman Monique Aniel said she didn’t believe the board should use money to fight a referendum. She also said she was concerned that older residents living on fixed incomes may not be able to continue living in their homes because of the rise in property taxes.

Deoruche said he was afraid the tax cap would destroy the town.

“It’s your job to look over the welfare of the employees and the community,” he told selectmen. “There are people who want these services and the development.”

Betty Barrett, a SAD 43 board member, said she believed that if selectmen took a stance, it would be like telling people how to vote.

“You don’t have that right, and if you sign that resolution, you are telling people how to vote,” she said.

“Where are the basic services to come from? Every dollar cut from our budget we would lose federal dollars,” Derouche said.

Roxbury resident Bob Worthley, a member of Tax Cap Now, said opponents of the bill were using scare tactics.

“We have worked for years for tax reform and it’s fallen on deaf ears. There are two sides to the story,” he said.

Selectman Reggie Arsenault agreed that the tax-cap bill would hurt the town. He suggested that the board get together with local state legislators to discuss the issue.

In the end, no resolution was taken and the board agreed to mail a newsletter to residents within a week or so, giving both sides of the issue. A second newsletter, with similar information will be mailed just before the Nov. 2 election.