Multi-million dollar cash flow issue could spell major problems for Millinocket

5:27 PM, Jun 18, 2013   |    comments
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MILLINOCKET, Maine (NEWS CENTER) --- The town of Millinocket is in some tough financial straights. Over the years townspeople have faced a rough ride in trying to keep things going with fewer people and less tax revenue. Now town officials here say a massive cash flow problem could keep the town from paying its bills going forward.

Millinocket's fund balance needs to be at about $3.5 million. Officials say the town would use that fund balance to pay for expenses before property taxes come in.

Yet officials now say unfortunately the money in that account is far too low. Right now Millinocket only has about 1.3 million in fund balance.

Town manager Peggy Daigle says that's because officials drew money from the account last year to meet expenses. She says as a result Millinocket residents will now have to pay their property taxes in August, which is three months before they usually do.

"It will be difficult for people to make those payments," she said, "and meet that schedule because they're used to having that tax bill due in November..and so we're accelerating when we expect to get payment on the taxes."

Daigle says Millinocket is already facing other problems with property taxes. Close to 40 properties in the town are considered delinquent at this time. In all the town is owed more than $100,000 in taxes on just 12 of those homes. Cate Street Capital which owns the closed Millinocket paper mill also owes the town $400,000.


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