MEXICO – Selectmen hope to meet with the town’s auditor Nov. 23 to get a better idea of the town’s debt. They also plan to meet with each of the town’s department heads to get suggestions on how expenses can be reduced.

As of Friday, Treasurer Penny Duguay estimated a debt of about $300,000, all of it owed to the town itself. About $197,000 is owed to the town’s various reserve accounts. The remainder is for unexpected expenses that occurred over the past year or so, she said.

A separate $200,000 tax anticipation note has been paid off with property tax money that has been coming in. Mexico property owners are allowed to pay half their taxes in October and half in March without penalty. If another tax anticipation note is needed to maintain cash flow, it could be taken out prior to the second property tax payment in March, she said.

Board Chairman Arthur Bordeau said Monday that he was unaware of the town’s use of reserve money until just before the auditor presented his report in mid-October.

He said he, Selectman Monique Aniel and the assistant to the town manager, David Errington, hope to meet with Town Manager Joseph Derouche on Tuesday morning to go over budgetary items and possible ways to cut municipal costs.

Derouche has resigned and will be leaving by Dec. 31.

At the past two or three board meetings, selectmen have started making cuts to various departments and for equipment purchases to try to reduce a cash flow shortfall that may occur sometime in early 2005. Among those cuts were purchase of a police cruiser and elimination of selectmen’s salaries.