By Jen Otterson,Staff Writer

OTISFIELD – Residents will soon be asked to approve a change in their fiscal year. Selectmen met Wednesday with the Finance Committee to discuss the details of the change, which they hope to make next year.

Otisfield’s budget currently conforms to the calendar year, with a town meeting in March and taxes collected four times each year. Selectmen discussed changing to a fiscal year beginning on July 1 and ending June 30, with a June town meeting and taxes collected twice each year.

Many steps need to be taken, and many and decisions have to be made before that can happen. Although the Board of Selectmen has the power to change the fiscal year without approval from the residents, Finance Committee Chairwoman Joanie Jacobs told selectmen that area towns that have made the change recommend asking for taxpayer approval at a special town meeting.

The timetable for the change is tight. Selectmen plan to announce a date for a public hearing at their meeting next week. The hearing must be held at least seven days after the announcement. Another 90 days must pass before a special town meeting may be held. Selectmen and members of the Finance Committee anticipate holding the special town meeting in November.

Jacobs said that John O’Donnell and Associates, which is conducting the town’s reassessment, recommend that when towns change to a fiscal year they have a six month budget at the beginning of the calendar year and change to a 12-month budget when the new fiscal year begins. The alternative would be an 18-month budget to begin in January 2006 and end in June 2007.

Selectmen agreed with O’Donnell and the Finance Committee that a six-month budget would be best. Because of this change, department heads will be asked to draw up a six-month budget, which will be voted upon at the March town meeting. Then a 12-month budget for July 1 to June 30 will be approved at a town meeting tentatively planned for June.

Jacobs said that other towns have recommended a June town meeting to coincide with the county and school budgets. Selectman Mark Cyr said that a change would keep the town from being surprised by increases in the school budget. “It would be great,” he said, “to go to a town meeting and say if you vote for everything your mill rate is going to be this.'”

Jacobs pointed out that the change will also eliminate the need to issue tax anticipation notes, loans taken out by the town to cover the period between the start of the fiscal year in January and the appropriation of tax money at the March town meeting.

Another potential problem addressed by selectmen is town officers’ terms. Terms now begin in January. Selectmen questioned whether elections should be held for six-month terms in January 2006 and again for 12-month terms in June.

Cyr felt that a six-month term would be “disastrous.” With the amount of training required for a town clerk or selectman, he said “it costs a lot of money to put someone into office.”

Selectmen agreed that an 18-month term just for the coming year would be best. Unlike changing the fiscal year, though, selectmen do not have the power to change officers’ terms and will put the question before voters at the November special town meeting.