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FARMINGTON – Town officials in Franklin County are looking for ways to lessen the impact on taxpayers as the county changes to a July 1 to June 30 fiscal year.

County commissioners initiated the change to align the budget year with that of the state, which governs jail operations and unorganized territories.

Carrabassett Valley Town Manager Dave Cota, along with other town managers, asked county commissioners Tuesday to change tax billing practices from one payment a year to two to help towns with the transition.

County commissioners said they saw no problem with the request but want to send it for legal review before taking action.

This year, towns will be assessed for their share of county operations for 18 months instead of 12 months as the county makes the fiscal year change. A county budget of $2.48 million for the first six months of this year was approved in December. Deliberations will begin soon on a budget for July 1, 2009, through June 30, 2010.

This year, taxes assessed for the 18 months from Jan. 1, 2009, to June 30, 2010, will be due Nov. 1, 2009.

State law allows counties to go to a two-payment system. It also allows towns facing a change in the county’s fiscal year to pay the additional six months taxes in equal payments over a five-year period, county Clerk Julie Magoon said.

Notices will be sent to towns outlining payment options.

Cota suggested a change to two payments, one on Oct. 1, 2009, and the second half on April 1, 2010, or something similar. That way towns would not have to go to taxpayers with a significant increase, Cota said.

For Carrabassett Valley, if there is only one payment, taxpayers would have to rise about $900,000 for 18 months compared to $600,000 in 12 months.

“I think it’s an easy fix,” he said, to a serious issue of coming up with more money.

Farmington Town Manager Richard Davis agreed with Cota. He said towns could think of it as having county taxes due in six-month blocks.

Rangeley Town Manager Perry Ellsworth, Jay Town Manager Ruth Marden and Kingfield select board administrative assistant Greg Davis concurred.

Ellsworth said it would be a seamless transition for those towns on a calendar year, if two payments were allowed because it would still cover a 12-month period. However, a town such as Rangeley operating on a July-to-June fiscal year, would have to raise 18 months of taxes at town meeting to cover the change.

Towns besides Rangeley operating on a July-to-June fiscal year are Jay, Wilton, Phillips, Sandy River Plantation, and Dallas Plantation, Ellsworth said after the meeting. They would need to budget for 18 months as they vote on a budget for 2009-10 because the new payment schedule would include a 12-month payment on or before Nov. 1 this year and a second payment in April the following year or whatever commissioners decide if they approve the request.

Towns could also opt to finance the additional six months over five years.

Ellsworth estimated additional tax burden on Rangeley for the fiscal year 2009-10, if the 18-month budget saw no increase, at $278,422 to bring its share to about $835,265.

Marden estimated after the meeting that Jay would be facing $1.35 million for its share for 18 months. She said it broke down to $900,000 for a whole year and an additional $450,000 for the six months.

She believes it would be better for the town to take the additional money out of the town’s undesignated fund rather than pay interest.

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