MEXICO – A special meeting has been scheduled to set up both long- and short-term plans to get the town books back in the black.

A recent audit showed no carryover, and an estimated debt of about $131,000. In addition, to continue the town’s cash flow, money from the reserve accounts has been used.

“This is why I asked to have this meeting,” said Selectman Monique Aniel at Wednesday’s regular board meeting. “I want short- and long-term plans.”

She has suggested a freeze on hiring and supply purchases. Additional details are expected to be worked out at the 6:30 meeting tonight.

Town Manager Joseph Derouche said a process has already begun to set up reserve accounts so they can’t be touched when a cash flow problem arises. But, he said, it can’t be done all in one year.

Town Clerk Penny Duguay said a tax anticipation note and some of the reserve money will be paid back as property tax money comes in.

The due date for the first property tax payment was Friday, Oct. 29. By the end of the work day on Oct. 28, Duguay said more than $700,000 had been collected.

About $197,000 of a total $225,000 set aside in various reserve accounts has been used, along with a tax anticipation note of $200,000.

Several unexpected expenses as well as an increase in the municipal budget are partially to blame for the town’s financial problems.

Some of these issues, such as requiring rental payments by the Wellness Center for use of a portion of the Mexico Recreation Center, are being worked out. Others aren’t, including emergency replacement of the furnace at the rec center, costing $50,000, unexpected money needed for the police department, and a reduction in taxes paid by MeadWestvaco on the landfill in town.

But Aniel, and others, believe the town is spending too much.

“This board has got to stop spending. You’ve got to sit back and look at your budget,” said Betty Barrett, a former selectman who now serves on the SAD 43 board. “Palesky or not, we’ve got to cut spending.”

Board Chairman Arthur Bordeau said the series of workshops expected to start after tonight’s meeting will include the beginning of the development of the 2005 municipal budget as well. Because of the cash flow problem, the board has decided to get to work on it earlier than usual.