MACHIAS – The Board of Selectmen accomplished a major shift in banking for the town at its meeting Thursday night.

Bids for a $390,000 loan for five years to construct a road and install utilities, water and sewer, spurred the change when Machias Savings Bank offered the lowest rate of 3.65 percent. The town would have to have deposits within the bank, however.

A review of other local banking institutions revealed that Machias Savings Bank offered the best deal for everyday banking as well, said Town Manager Betsy Fitzgerald.

Not only would Machias Savings Bank charge no banking fees for services such as direct deposit, Internet banking and credit card use, the deposits would earn an estimated $29,000 annually.

Chairman Aubrey “Skip” Carter said, “We’ll gain revenue plus get the very best interest rate for the loan.” Although changing banks will involve a bit of paperwork, Carter added, “We’ve got to look at what is best for the taxpayers.”

The board voted to establish a new committee to look into the care of town cemeteries. Fitzgerald said the Daughters of the American Revolution had been caring for the O’Brien Cemetery, which is located on the banks of the Machias River downtown.

“The DAR is most concerned, particularly about the fence,” Fitzgerald said. “It is not there in some places and hazardous in others. It is beyond the DAR capabilities to maintain it.” Fitzgerald said that state law required the town to maintain the cemetery because it contains the graves of veterans and she said the town’s public works department had been assisting the DAR.

The DAR also has some funds it will donate to a new fence, Fitzgerald said.

Carter suggested that the public works crew could measure the fence, assess its condition and provide a cost estimate for its repair or replacement.

“We have a responsibility to maintain these cemeteries. Eventually we are all going to end up there, so we should take care of it,” he said.

Fitzgerald said a volunteer town cemetery committee would provide a vehicle to inventory and assess all of the town’s cemeteries. Court Street Cemetery already has a group and Fitzgerald said it should be represented on such a committee.

Anyone interested in serving is asked to contact the town office.

In other business, selectmen:

. Agreed to explore lease agreements and fees for space to construct hangars at the Machias Valley Airport, which is town-owned.

. Formalized a genealogical research policy which provides one hour of town staff time free and a fee of $10 an hour after that.

. Approved a renewal liquor license for the Blue Bird Ranch Family Restaurant.

. Agreed not to hold their Dec. 27 meeting and instead go directly to the Jan. 10 meeting.