Veazie council says it’s not ready to release money to allow sewer district to cover debt payment

Posted Sept. 05, 2012, at 5:54 p.m.

VEAZIE, Maine — The Town Council decided during Tuesday night’s meeting that it wasn’t comfortable paying a portion of the Veazie Sewer District’s assessment ahead of time in order to allow the district to pay off a portion of its debt.

In August, the district’s auditor said the district wouldn’t be able to cover its costs by October because it was not taking in enough revenue to cover its operating and debt service cost.

Sewer District board of trustees Chairman Robert Tomilson asked that the town give the district $75,000 by Sept. 15 so the sewer district could make a debt payment that is due Oct. 1.

Town Manager Joseph Hayes said Tuesday night that the town has about $480,000 in its coffers, but some of that money has to be reserved for school payments, paving and paying salaries in coming weeks.

The town also isn’t certain how much it will receive for incoming payments this month.

“I’m worried about cash flow. I think everybody is,” Councilor Brian Perkins said.

The consensus of the council was that there were too many “ifs” concerning town finances, and councilors said they weren’t comfortable releasing another $75,000 without being sure of the finances for the remainder of the month.

Tomilson said the sewer district likely would seek to open a line of credit to cover costs, but that getting the money from the town might have been a less expensive option.

Also at Tuesday’s meeting, the council:

• Decided to gather more information and opinions about the potential privatization of the town’s public works department.

• Set Oct. 1 as the date for a public hearing to discuss proposed changes to Casco Bay Energy tax-increment financing.

• Voted to accept a $2,152 bid for a 2002 Superline trailer that the town hasn’t used in several years.

SEE COMMENTS →

ADVERTISEMENT | Grow your business
ADVERTISEMENT | Grow your business

Similar Articles

More in Bangor