PARIS — A simple typo generated a $500,000 shortfall in Oxford County’s tax collections, which led to a corrected tax bill being sent to all 35 towns and the unorganized territories.
Original tax assessments were sent in April and the corrected version was sent last month, according to Deputy County Administrator Abby Shanor.
The corrected bill included additional charges that ranged from $1,806 for Gilead to $42,454 for Newry.
Rumford received a corrected bill that added $29,648 and Mexico received a bill that asked for an extra $6,436.
Shanor stressed that the bills are not additional, they are simply a corrected version that was necessary due to a typo.
“It appears to me that it was somebody reading a line item that could easily have mistook a three for an eight,” Commissioner Steven Merrill of Norway said. “It’s a big mistake. Obviously anybody could make that kind of a mistake.”
Rumford and Mexico officials said they are not happy about the unanticipated expense. Representatives from the towns attended the commissioners’ Sept. 5 workshop to make it known.
“We pay the taxes to make sure you guys don’t do this, but all of this is jeopardized because of a mistake,” Mexico Selectman Randy Cantwell said, referring to Mexico’s budget.
Cantwell, Mexico Town Manager Raquel Welch-Day, Mexico Select Board Chairperson T.J. Williams, and Rumford Town Manager George O’Keefe attended the meeting and spoke.
County Administrator Zane Loper apologized for the mistake and noted that the commissioners and the county administration took into account recommendations from Treasurer Beth Calhoun to send out a corrected tax bill, rather than split the increase across two years.
Loper said any towns that are unable to pay the bill or need to discuss a payment plan can contact Calhoun.
The bills are due in late December, rather than September, as per usual, Shanor said.
The discussion involved revenues from Oxford Casino, and why they could not be used to make up for the $500,000 typo.
Shanor said the fund has $233,542, but is usually closer to $1 million. The commissioners use that casino revenue to offset the tax burden for the towns, usually about $800,000, and then use additional funds from the account for county operations rather than using a tax anticipation note.
“We basically borrow from ourselves so we don’t have to pay interest to borrow that money,” she said.
The county’s undesignated fund balance, or surplus, sits at $606,000, but could not be used to cover the $500,000 shortfall, according to Oxford County Commission Chairperson David Duguay of Byron.
Calhoun said the fund balance was “not healthy enough to absorb the mistake.”
Loper explained that the county is in the midst of an administrative transition, as he and Finance Director Lindsay Kay only started in their positions three weeks earlier.
“We now have a finance director,” he said. “She’s working very hard on getting these balances up to date.”
“We’re in the middle of changing out our finance department,” Merrill said. “We haven’t been getting financial reports like we usually get.”
O’Keefe suggested commissioners do not have enough financial data at the moment to make a proper decision regarding the tax bills to the towns.
“You may have options if you get your accounts reconciled, that you may not be able to recognize right now,” he said.
The commissioners will next meet at 9 a.m. Sept. 17.
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