UPDATE: Tensions escalated in Lubec as residents clashed over urgent decisions regarding the town’s share of $8 million in county debt. During a heated meeting on Wednesday, November 15, 2023, the Lubec Board of Selectmen proposed two options to voters for addressing the town’s share of the tax anticipation note, which amounts to $423,511.95.
The meeting was marked by interruptions and angry exchanges, forcing Chairwoman Carol Dennison to intervene multiple times. The town’s financial troubles stem from years of mismanagement, including a failure to properly bill municipalities for taxes, leaving the county in dire straits.
If Lubec chooses to prepay its share, it could avoid costly interest on any bonds the county might issue to manage this debt. However, this solution is not without consequences. Prepaying would incur early withdrawal penalties on the town’s certificates of deposit, with the potential cost reaching $4,200.
Selectman Mark Kelley highlighted that using a $500,000 certificate of deposit could actually yield a net gain, even after penalties, emphasizing the urgency to make a decision. “We could come out $38,000 ahead,” he stated, urging the board to act quickly.
Denison expressed concern over accountability, warning that without proper oversight, Lubec could face greater financial burdens in the future. “You don’t have any accountability if you voluntarily give the county this money without guidance,” she cautioned.
The audience’s frustration was palpable, with one resident shouting, “It’s stupid, what you’re saying.” Dennison responded sharply, asking, “Are you calling us stupid?” This exchange underscored the emotional stakes involved as residents grapple with their town’s financial future.
As the meeting progressed, Selectman Daniel Daley suggested that cashing in the larger certificate of deposit could be the cleanest approach to handle the payment, despite the associated penalties. He also revealed that the county is considering revisions to its budgeting process to prevent future financial crises.
The board is set to present these options to voters at a public hearing on December 17, 2023. Residents will decide whether to prepay the 2025 taxes or allocate funds towards the 2026 tax obligations.
This situation is further complicated by a backdrop of potential department closures, including the Sheriff’s Office, due to budget constraints. Daley stressed that while essential services would remain operational, the community must prepare for tough decisions ahead.
In a poignant moment, the meeting concluded with a tribute to John Rule, a local reporter who recently passed away. He had dedicated over a decade to covering Lubec, reflecting the tight-knit fabric of the community that transcends financial challenges.
As Lubec residents brace for an important decision, the outcome of this meeting could have lasting implications for the town’s financial health and governance. The time for action is now, and community members are urged to engage in this critical dialogue ahead of the upcoming vote.
