MECHANIC FALLS — Town Manager John Hawley told the Town Council on Monday that the Mechanic Falls Historical Society building is closed indefinitely because water has loosened many of the basement floor tiles.

“Apparently, water seeped up through the floor,” Hawley said. “The local Girl Scout troop that meets there found it and reported the problem.”

Hawley said the insurance company determined that the damage was naturally caused and therefore not eligible for a claim.

“It would be covered if it was caused by something like a broken pipe, but we can’t find any pipes there,” he said. “Maybe once we get under the concrete pad, we’ll find something.”

Hawley said it appeared the concrete floor may have settled but was quite puzzled as to what could have caused it to do so.

The Elm Street building was built in 1848 and until recently housed the local Congregational Church.

A few years ago it was donated to the town with the understanding that it would become headquarters for the historical society. The upper floor houses the society’s collection of local memorabilia and the basement is used as meeting space for local groups.

Hawley said that while the historical society hasn’t asked for help, the town owns the building and has an obligation to do something about it.

The cost to remove the tiles, which contain asbestos, is estimated to cost $2,500, Hawley said. Determining the cause and the cost for fixing it is an unknown.

“We don’t know what’s under the concrete,” he said.

Hawley said the historical society doesn’t have any money and the town’s repair line is tapped out for the year.

Council member Nancy Richard suggested this might be the time for community groups to gather together to hold a special dinner, a major fundraising effort, larger than those the historical society has held in the past that have managed to keep the place warm and the lights on.

The council told Hawley to work with the historical society to see what can be done.

In other business, the council adopted an update of the Police Department’s false alarm policy, the key amendment being to establish a $50 charge after the fourth false alarm, making it consistent with policies in neighboring towns.

The council also agreed to hold a public hearing on the town’s proposed 2014-15 budget at 7 p.m. Wednesday, April 30. The council will meet following the public hearing to approve a warrant to go to voters for a referendum.

The council directed Hawley to prepare a separate warrant article asking voter approval for a $30,000 match for a Federal Emergency Management Agency hazard mitigation grant to deal with washout problems on Lane Road. The project, which would install a large box culvert, is estimated to cost about $117,000.

The council also will present an updated solid waste ordinance at a public hearing at its May 5 meeting.