MILLINOCKET, Maine (NEWS CENTER) --- Town leaders in Millinocket succeeded in getting budgets passed for the town Thursday night. This comes as the town is facing a massive cash flow problem.
Town officials say Millinocket doesn't have enough money in its fund balance, which is the account the town can draw on to pay bills before property taxes are collected. At this point Millinocket only has about $800,000 left in that account which officials say would only pay expenses for a few weeks.
The town council responded by trimming the municipal budget by $300,000. Town leaders will also be asking residents to pay part of their property taxes by the middle of August and are also recommending that the school budget be trimmed by another $300,000.
The town will have a referendum on the school budget on July 9, 2013. Millinocket is also looking to collect thousands of dollars in unpaid taxes on properties in town. Cate Street Capital, which owns the Millinocket paper mill, owes the town about $450,000. Town officials say they are considering legal action to get it.