MILLINOCKET, Maine (NEWS CENTER) --- A day after town leaders settled on a $6.2 million budget for Millinocket, the work began to raise the tax money on which it will be built.

This fiscal year town leaders are asking residents to pay part of their property taxes by the middle of August. It's all due to a severe cash flow problem that Millinocket is facing because the town's fund balance is too low. At this point town manager Peggy Daigle says the fund balance -- whichis an account used to pay bills before property taxes come in ---is at $800,000, which would only last the town for a few weeks. As a result,officials in Millinocket say they have been unable topay several bills for the town.

The early tax deadline is causing concern for some residents and business owners who are already behind on their taxes. Albert Bilbo, who owns a few buildings on Penobscot Avenue, is in a dispute with the town for $40,000 in back taxes.

"They {the town}gave me a month to evict," he said, "I don't know what I'm going to do..but I am going to a bank but I am trying right we can keep the business."

Bilbo isn't the only property owner in Millinocket facing problems. In alltown officials say there areclose to 40 homes and businesses in town considered to be delinquent. On 12 of them alone the amount in property taxes owed is more than $100,000.

Cate Street Capital, which owns the shuttered Millinocket paper mill, also owes the town about $450,000 in back taxes. At Thursday's budget meeting town councilors considered the idea of placing a lien on the company for the money.

Cate Street Capital bought the closed paper mill back in 2011. Company officials are hoping to convert part of it into a torrefied wood facility by early next year. A spokesman for the company offered no comment Friday on the council's discussions.

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