NORWAY — With Norway Paris Solid Waste facing a cash flow problem and a potential budget shortfall, the Select Board agreed Thursday to advance the facility two months of funding.

Sending December’s payment with the money due in November, however, comes with conditions.

At the recommendation of Town Manager Dennis Lajoie, the board agreed to require NPSW to meet monthly with the Select Board chairmen from Norway and Paris, the two town managers and a board member of NPSW to review its financial conditions.

The group should meet monthly to discuss operation issues where the two towns could possibly assist NPSW, discuss the audit process and review any future cash flow issues and budgetary shortfalls and come up with strategies to resolve the situation.

The board unanimously agreed to the advance payment and the stipulation.

The waste facility has seen revenue for recycling drop in recent months as added surcharge and transportation costs significantly rise.

The facility had asked the two towns to provide an additional $10,000 for the next nine months to get through the fiscal year which ends June 30, 2023. Paris had offered to contribute that amount, using its share from the American Rescue Plan Act, but Norway has already allocated all of its federal funds.

Lajoie said the only way Norway could financially assist NPSW was through a special town meeting, but there is no guarantee voters would support the request.

Lajoie suggested the plan to fund two months in advance, which would buy the facility some time to see if expenses stabilize and conditions improve with recycling and disposal. It would also provide six months of expenses and revenue to help the group plan for the final two quarters.

“They agreed that this could help their immediate cash flow needs and would give them some additional months to see where the trends are going,” Lajoie said.

The advance payment would also allow the facility to determine how its new fee structure for disposal will affect the budget. Starting Dec. 1, residents of the two towns will pay more for disposing of items such as mattresses, furniture, refrigerators and televisions.

Lajoie and Select Board Chairman Russell Newcomb met with the NPSW board in late October to discuss the situation.

The two towns contribute a combined $584,000 per year, paid in monthly installments, which makes up 74% of its budget for the operation on Brown Street. But since the start of the new fiscal year, recycling revenue is down and expenses are up, including energy and transport fees. According to Lajoie, recycling income is roughly 10% of projected revenue and disposal income is about 14% of projected revenue.

« Previous

Oxford County arrest log: Nov. 7, 2022

Next »

Gender identity policy debate continues during SAD 17 school board meeting