MECHANIC FALLS — Town Manager Vic Hodgkins told the Town Council and Budget Committee on Monday that the town is on pace to be debt free in two years.

In a workshop session held before the regular council meeting, Hodgkins said the bond for the excavator should be paid off this upcoming year and the five-year road work bond is scheduled to be paid off next fiscal year.

Hodgkins then submitted a five-year capital improvement plan for the public works, transfer station, and fire and police departments, as well as work on roads and sidewalks. He said his preference would be to establish a funding mechanism for the CIP without the need for the town to go into debt and pay interest on bonds, which he sees as a waste of money.

Budget sessions are set to begin Monday when department heads present their budget requests to the council and Budget Committee, Hodgkins said. The public meeting starts at 6 p.m. in the council chambers at the municipal building at 108 Lewiston St.

Hodgkins also announced the town received $58,000 from the Property Tax Stabilization Program.

The program, also known as Property Tax Stabilization for Senior Citizens, was intended to lock in property taxes for Maine residents over 65. It was repealed in July by lawmakers, citing flaws in the program.

Hodgkins pointed out the town is still owed another $45,000 because the state only reimbursed municipalities 56% of what was promised by the program. He said emergency legislation is being considered to reimburse the balance.

Regional School Unit 16 Chairwoman Mary Martin told the council that the district does not expect to receive grant money from the state’s School Revolving Renovation Fund to update the heating and ventilation systems in any of the elementary schools.

The fund is intended to provide interest free and partial forgiveness loans to enhance health and safety features in school facilities.

Martin also said the district’s share of state subsidy is expected to decrease due the increase in valuations for Mechanic Falls, Minot and Poland, the three towns in RSU 16.

Director Jessica Smith, who represents Mechanic Falls, requested town assistance in excavating and repairing the chain-link fence area by the playground at the rear of Elm Street School.

Hodgkins said he had been in contact with John Hawley, RSU 16’s director of operations, on the matter and discussed this with Scott Penney, Public Works director for Mechanic Falls.

Hodgkins said the town needs additional information for the project, which he was told could take about a week and a half to complete.

Since spring and summer are busy times for public works departments, Hodgkins said the town could not commit without more information.

Councilor Ray Lavoie said he has had more than 30 years of experience in excavation and could supply the machines and manpower to do the project if the district pays for the material.

Smith welcomed Lavoie’s help and said she will get back to him.

In other business, the council accepted a gift from artist David Rogers, a pastel painting depicting a Canadian National Train going through town. A letter from Rogers, a 1981 Edward Little High School graduate, explains that he was a former resident of Mechanic Falls and did the work while attending ELHS.

The work was recognized by the school and was hung in the State House in Augusta. A letter written and signed by then-Gov. Joseph Brennan accompanies the work in a glass enclosed frame.

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