March 29, 2024
BANGOR DAILY NEWS (BANGOR, MAINE

Milo selectmen settle tax dispute with Consolidated Hydro pact

MILO — Selectmen in a recent executive session voted to sign a tax agreement with Consolidated Hydro to end a long period of negotiations with the private electric company.

Town Manager Jane Jones said the issue began when the town assessed Consolidated’s property at $1.1 million. That would have made the company’s tax bill $20,701. The company contested the evaluation, maintaining that the tax bill should be $9,648 based on a $539,000 evaluation of the Sebec River Dam and its equipment. Consolidated appealed the valuation to the State Board of Property Tax Review.

The town, the state and Consolidated representatives conducted a long period of negotiations before agreeing on a valuation of $908,000 for the dam and a tax of $16,253.

Changes in the valuation resulted in changes in the lease agreement for the dam, which is located on town-owned land. The town is in the 10th year of a 50-year agreement. New terminology has been written into the lease which was renewed for the next 40 years, said Jones.

The town, in lieu of rent, will receive 10 percent of the gross of sale of electricity to Bangor Hydro-Electric Co. from now until 1997. From 1997 to 2002, the town will receive 11 percent of the gross, and from 2003 until the end of the lease in 2033, the gross will be increased to 15 percent.

As part of the negotiations, the town earned a lump sum of $8,000 for back lease payments.

In other business, Jones gave the selectmen an update on the town’s search for a full-time police officer. The deadline for applications for the position is Dec. 31. More than 20 applications have been received.

The Police Selection Committee is made up of Police Chief Todd Lyford; Joseph Zamboni of the State Police; Michael Harrington of the Maine Drug Enforcement Agency; Fire Chief David Preble; Trelba Rollins, representing senior citizens; David Harmon, the town’s former police chief; Ralph Jones, a businessman; and Roberta Mossor, a town office employee.

After the application period closes, the committee will meet in January to do background checks, consider qualifications, and make a recommendation to the selectmen.

The opening on the police department occurred when Officer Gary Gray of Orrington resigned.

Selectmen also appointed Robert Kenney, a reserve officer, to serve as an interim temporary police officer to cover Gray’s slot in the department schedule.

The board decided to advertise for bids for three or four parcels of tax acquired properties.

Only one of the properties has a structure on it, said Jones. The building has been unoccupied since about 1988. That property, she said, had been involved in some legal entanglements with the Internal Revenue Service, but those difficulties have been ironed out and the town can now offer the property for sale.


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