UPDATE: Tensions flared during a heated meeting in Lubec on December 13, 2023, as residents debated how to handle the town’s share of a staggering $8 million debt in Washington County. The Lubec Board of Selectmen has announced two options for voters to consider regarding the town’s $423,511.95 contribution, with a critical vote scheduled for December 17.
Residents voiced their frustrations as Chairwoman Carol Dennison struggled to maintain order, banging her gavel multiple times amid interruptions. The county’s request for municipalities to prepay their share of the tax anticipation note (TAN) has ignited a firestorm of discontent, stemming from years of financial mismanagement and underbilling issues.
The proposed prepayment options would save Lubec from incurring additional interest on potential county bonds. However, this comes at a cost: the town could face early withdrawal penalties from its certificates of deposit (CDs) to fund the prepayments. Selectman Mark Kelley noted that even with penalties, prepaying could still yield a net gain for the town.
In a dramatic exchange, Dennison warned the audience that any unregulated payment could lead to future financial pitfalls. “You don’t have any accountability if you voluntarily give the county this money without guidance,” she insisted, receiving immediate backlash from attendees. One audience member challenged her directly, sparking a tense back-and-forth that underscored the urgency of the situation.
The financial crisis has ramifications not just for Lubec but for the entire county. Selectman Daniel Daley revealed that the county is exploring potential recovery of funds from previous treasurers and is considering significant budgetary reforms to prevent future crises.
As the December 17 vote approaches, community members are eager for clarity on the proposed options. They include using up to $423,511.95 from the town’s CDs to either prepay 2025 or 2026 taxes. A special town meeting will follow a public hearing at 5 p.m. on that date to finalize the decision.
The meeting also served as a remembrance for local journalist John Rule, who passed away on Thanksgiving Day. Rule had dedicated over a decade to covering Lubec, and his contributions to the community were acknowledged amid the heated discussions.
Residents are urged to stay informed as the town grapples with its financial future and the implications of these decisions. This urgent matter has the potential to reshape Lubec’s fiscal landscape and requires immediate attention from all stakeholders.
