PHILLIPS — The Town Office faced an unfortunate set of circumstances over the past two weeks when employees’ checks were not processed and their health insurance accounts potentially compromised, the town manager told selectmen Tuesday.

Town Manager Elaine Hubbard said she processed employees’ payroll deposits Monday, Jan. 26, because of a blizzard forecast for the next day.

The snowstorm closed the local Skowhegan Savings Bank branch Jan. 27, but Hubbard assumed all was well, because her files had been uploaded without a problem.

She learned Jan. 28 the Federal Reserve does not accept a payroll deposit more than three days before it has to be paid. When the Federal Reserve kicked her deposit back to the bank, she said, it was Jan. 27, when the bank was closed.

Ordinarily, the bank would have reprocessed it immediately, she said, but when employees didn’t receive their paychecks Friday, Jan. 30, she made some calls.

After some research, her bank representative explained the unfortunate timing of events that stalled the paycheck processing.

Employees have since received their pay, she said.

“The bank was great about making sure any fees or bounced checks costs were covered,” she said.

Next, she said, employees were notified of the recent online security breach at Anthem Blue Cross-Blue Shield.

Hackers gained access to customers’ personal information, including names, birth dates, medical IDs, Social Security numbers, street addresses, email addresses and employment information, including income data.

Hubbard said Anthem has contacted customers and the town’s employees will be provided with an identity theft protection service and other help to make sure their identities and financial information are safe.

Hubbard said she has now resorted to the past practice of handling financial transactions.

“Until things kind of calm down and level out, I’m cutting checks,” she said. “It’s been a busy two weeks, but everyone’s been patient.”

Hubbard said she will send a letter to the Franklin County Animal Shelter about the 10 percent increase levied on the town for the coming year. The increase is based on population and Hubbard wants information that justifies the hike.

“A lot of the money the town spends on animal control comes from cats,” Hubbard said.

Selectman Andy Phillips said he recently attended a meeting with selectmen from Strong and Avon to discuss the possibility of sharing animal control officer services and costs, including equipment.

Ann Dunne, Strong’s animal control officer, has equipment provided by the town, so Phillips said the consensus was that all three towns needed to buy their own equipment and individually pay Dunne for her services.

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