MACHIAS — The Machias Select Board held four public hearings Thursday on the county’s tax anticipation note, proposed solar and wind ordinances and whether to allow long‑term leases.
Residents are expected to vote on the issues at a special town meeting scheduled for 5 p.m. Wednesday, Dec. 3.
The Select Board has proposed taking out either a five- or 10-year loan to cover its share of the estimated $8 million county tax anticipation note, avoiding the cost in next year’s county tax assessment.
Years of financial mismanagement have left Washington County without funds and facing an $8 million tax anticipation note, or TAN, owed to Machias Savings Bank by Dec. 31.
To help with cash flow, the Washington County Commissioners have asked the county’s 44 municipalities to pay their share of the TAN early if they are willing and able.
Washington County voters rejected a proposal Nov. 4 for the county to borrow up to $11 million to pay off the TAN by year’s end. As a result, each municipality’s share of the TAN will be added to its tax assessment in the next budget cycle unless it pays the county early.
Select Board Vice Chair Ben Edwards, who also serves as vice chair of the Washington County Budget Advisory Committee, suggested that Machias consider a five-year loan to cover its share of the tax anticipation note. He said other municipalities might not be in as strong a financial position as Machias.
“We need to get as much of the TAN paid back before Dec. 31 as possible to make sure that the county can continue to function,” Edwards said. “So I think it’s in the best interest of the county, and also in the best interest of the municipality, to move ahead and pay off our commitment as well.”
Machias’ share of the proposed county tax anticipation note, based on 2025 property valuations, is 3.93 percent, or an estimated $314,152.41.
Machias Finance Director Nicholas McDonald said he is confident the town’s undesignated fund balance, or surplus, is sufficient to cover the bill while still maintaining enough to fund three to six months of operating expenses, as recommended by the Maine Municipal Association.
“We do sit strong on our current finances,” he said.
McDonald said the plan is to pay off the loan within a year, once the 2024 and 2025 audits are completed, since there are no prepayment penalties and doing so would save the town interest costs.
A five-year loan at 4.2 percent interest would require annual payments of about $70,964.10 and total interest of $40,668.09, according to a memorandum from McDonald. A 10-year option at 5.6 percent interest would reduce annual payments to about $41,878.04, but increase total interest to $104,628.02.
Edwards said the county tax assessment will rise next year, but Machias’ share will not increase as much if it pays off its portion of the TAN early.
“What we’re essentially proposing with this is to borrow the money temporarily to get these audits done so we know exactly where we are with our cash position,” he said. “Then, hopefully, if it’s where we think it is, we’ll just pay the loan off.”
Town Manager Sarah Craighead Dedmon said the county’s financial troubles were largely caused by delayed audits, and the town wants to confirm its surplus funds through audits before using them.
Draft solar ordinance
Residents also reviewed a draft ordinance on commercial solar energy systems that would set guidelines and restrictions for large-scale installations.
Public comments will be reviewed and might be used to revise and finalize the ordinance before it goes to a vote Dec. 3.
“It establishes standards — for siting, noise, screening, decommissioning — for commercial solar development in Machias,” Select Board Chair Jacob “Jake” Patryn said.
He said the town received “an abundance of requests” for a commercial solar ordinance. Machias has had a solar moratorium in place since March.
Resident Stewart Atwood, who said he has an opportunity to lease his land for a solar farm, questioned the proposed 200‑foot setback, saying it would eliminate that option. He said a 100‑foot setback would be more workable.
Patryn said the board will take that into consideration.
“This is the kind of stuff we’re after,” he said. “We just need to consider all the angles.”
Craighead Dedmon said any farm under the proposed ordinance would have to be smaller than 25 acres and include a 200‑foot vegetative or topographic buffer to largely hide the installation from public view.
“Very few people knew about the size of the solar farm that we have up here on the Kennebec Road until it was drone-photographed, because it’s so hidden by vegetation and setbacks from the road,” she said.
Tora Johnson, a Machias resident and employee of the Sunrise Economic Council, said she supports having an ordinance because without one, “there’s nothing to stop anyone from putting an unrestricted, fully visible farm virtually anywhere.”
Craighead Dedmon said the final draft of the ordinance is to be posted with the warrant a week before the special town meeting.
Draft wind ordinance
A draft ordinance on wind energy systems was also reviewed, drawing little public comment.
The ordinance would regulate type one through type four wind installations. Patryn said type four towers can reach about 300 feet, and anything that tall would require a town vote for final approval.
“As with the solar, we don’t have the legal right to a wholesale ban on wind,” Craighead Dedmon said, “so again, this is us entering into the conversation to regulate it to the extent we’re allowed by Maine law.”
Long-term leases
At the special town meeting Dec. 3, the Machias Select Board is also expected to ask voters to authorize long-term lease agreements.
Craighead Dedmon said the board wants to lease land along the nearly completed taxi lane at Machias Valley Municipal Airport to pilots interested in building hangars there.
Edwards said the town would not make much money from leasing the space, but would benefit from increased tax revenue.
The Machias Select Board is scheduled to meet Dec. 3, following the special town meeting.
