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Old Town finance staff report midyear results, flag $17,000 rec-center receivable and permanent financing shift
Summary
The Old Town Finance Committee reviewed December financials at midyear, including a likely $17,000 write-off for the Old Town Rec Center receivable and conversion of a Global Secure loan to a 10-year Andrew Scoggin note; members also raised alarm about a projected 15.6% county tax increase and a lack of recent county audits.
Danielle, the town's finance director, told the Finance Committee that December marks the halfway point of the fiscal year and that most revenue and expense lines are at or below the 50% benchmark.
"This is my favorite month because everything should be at or below 50%," Danielle said, adding that the treasurer's revenue timing and routine collections produced no unusual concerns.
Danielle told the committee the town will likely need to write off roughly $17,000 in receivables tied to the Old Town Rec Center after a change in lease and ownership. She said the town has recorded an allowance for bad debt and plans to bring a formal recommendation to write off the balance at the next meeting.
The committee also discussed an economic development reserve tied to the Global Secure lease. Danielle said the town converted its prior borrowing to a 10-year permanent loan with Andrew Scoggin; the original loan was roughly $4.5 million, the town paid down about $2 million in cash and financed roughly $2.3 million over 10 years.
Committee members asked about revenue drivers. Danielle said investment income had been trending upward though December statements dipped; she confirmed the town receives modest revenue from electric vehicle charging stations and that airport sales revenue is overwhelmingly fuel sales. She also noted that a change in ownership at Old Town Housing will reduce pilot-fee income.
On expenditures, Danielle said most lines remain at or below the midpoint but flagged a Traffic Light repairs line that looks overspent because three crossing beacons were struck during the year; she said repairs have ranged from about $3,500 to $8,000 per incident and insurance recoveries are pending.
The balance sheet shows a $2 million receivable described as "due from Global Secure," Danielle said, and she reiterated that the town will not begin taking principal and interest distributions from the Global Secure arrangement until its Andrew Scoggin loan is repaid.
The committee spent substantial time discussing the county budget outlook after staff circulated projection information. Members said a county projection of a 15.6% increase would be significant for town taxpayers and discussed a pending LD (legislative document) that could allow county residents a vote on county budgets in the future. Several members urged more local engagement with the county process and recommended public pressure and attendance at county budget meetings.
The presentation closed with committee members thanking Danielle and noting follow-ups on the rec-center receivable and the Global Secure financing.
The committee did not take further formal action on financial items at the meeting; follow-up or formal votes on the proposed rec-center write-off and on any budget adjustments were deferred to future meetings.
