Councilors in Houlton vote for loan

HOULTON – Nobody likes to borrow money if they don’t have to, but in Houlton, town officials want to assure residents it’s necessary.

Some town councilors were reluctant to say yes when asked at a recent meeting to take out a $750,000 tax anticipation loan. The money will be used to run the town until the community can collect enough tax revenue to repay the loan and cover costs.

The town closes its books in January, but tax bills do not go out until August. Officials typically run the town in the interim with surplus funds and loans.

Houlton has taken out a tax loan numerous times in the past, but Councilor Paul Romanelli was reluctant to do so again. The proposed loan will cost more than $8,700 in interest before it is expected to be repaid on or before Oct. 31.

“Is there any way that we can get along without that money?” the councilor asked, recalling a time when the town did not need to borrow cash before taxes were paid.

Town Treasurer Nedra Hanson insisted at the meeting that the municipality needs the money to cover the community’s operating costs until residents pay their taxes.

“We’re going to need that $750,000,” she said. “Until the [tax] payments come in, we just don’t have the money.”

Hanson acknowledged that the town has gotten by at times in the past without taking out a loan, but she said it was not possible at this time.

“By the end of July, we won’t have enough money to cover our costs,” she said.

The group eventually opted to take out the loan.

“But grudgingly,” Romanelli said before he voted.