Board debates interest rate on late taxes, would-be mining ordinance’s inclusion on town meeting warrant

If someone is late paying their taxes, it is because they couldn’t pay them, not because the interest the town charges wasn’t enough incentive to pay on time, Alna Third Selectman Coreysha Stone said Wednesday night, Feb. 14.

The board, drafting the warrant for next month’s town meeting, was mulling whether to propose setting the interest rate at 8.5% for taxes 60 days past due. The rate, based on what the state allows, is up half a percent from last year, First Selectman Ed Pentaleri explained. “We set this at the highest (state-allowed) rate because we want to encourage people to pay their taxes on time.” Charging less interest could mean more people pay late, he said. “We have to manage our cash flow.”

“So you’re making money off of people who are struggling to pay their taxes, in theory,” Stone said. “To me that seems not where you want to make your money ... Putting it that high ... is a not a deterrent ...” to paying late, she said. “People, if they’re not paying their taxes, it’s ’cause they can’t.”

“I don’t want to make money ...,” Pentaleri responded. The town will pay 5.41% interest on whatever it borrows on its tax and revenue anticipation note, he said. “Then let’s set (the interest rate on late taxes) at that,” Stone said.

Selectmen will talk further before finalizing that and other warrant articles town meeting voters will take up March 23. Second Selectman Steve Graham objected to one – the proposed mining ordinance the planning board drafted over several workshops and with public input. He acknowledged the effort but voiced concern the would-be rules risk high legal costs if pit owners challenge them.

Graham questioned why the ordinance is proposed for this town meeting; and he asked if the selectboard must put it on the warrant. Pentaleri said not putting it on the warrant would disrespect the planning board and could spur “mass resignations.” He argued, Graham can speak against the proposal during town meeting. To Graham’s comments, Pentaleri said: “You’re not even going to allow adults in this community to make decisions on whether to adopt an ordinance?”

“I’m saying I don’t think it’s appropriate that it be on the warrant this year. I know (the planning board) spent a lot of time (but) they have not in my opinion given full consideration to the potential legal implications ...,” said Graham, who practiced law almost 50 years.

Selectmen discussed inviting Planning Board Chair Cathy Johnson to a working meeting. Wiscasset Newspaper is seeking comment from Johnson on the Feb. 14 discussion.

Also in the three-hour working meeting at the town office and over Zoom, selectmen discussed asking voters for $24,000 toward the next town-wide property revaluation. Assessor’s Agent John O’Donnell has recommended one in 2026, which gives the town 2024, 2025 and 2026 to raise the approximately $70,000 O’Donnell expects it to cost, Pentaleri said. 

The last one was in 2018, according to Alna.maine.gov. Pentaleri said, like elsewhere in Maine, property values in Alna have risen in recent years, so the town can expect an increase in the state’s estimate of the total property value in town.

The board plans to hear the fire department’s budget request Feb. 22.