Lubec headed to special meeting on county debt payments

The biggest topic of conversation in nearly every municipality in Washington County is the looming deadline to pay the county's year-end $8 million debt.

Municipal officials across the county have discussed solutions for weeks, and several boards met this week to finalize recommendations for voters.

In Lubec, the plan to cash out a $500,000 certificate of deposit to cover its $423,511.95 share of the debt seemed simple when the bank offered in September to waive early withdrawal fees.

Town officials later learned that was not possible because the investment was not a single CD, but a collection of deposits made through the Certificate of Deposit Account Registry Service, or CDARS.

The service allows businesses — in this case, the town of Lubec — to invest in multiple certificates of deposit through different federally insured banks to ensure Federal Deposit Insurance Corp. coverage for the full amount. Single CDs are capped at $250,000 in insurance, but with CDARS the entire $500,000 investment is protected.

When they met this week, selectmen discussed two options to pay the town’s share of the county debt, both involving cashing in the large CD and paying the early withdrawal fee to avoid dipping into the reserve fund.

Voters are expected to consider two options at a special town meeting scheduled for Dec. 17. The first would redeem the CD and pay Lubec’s share of the debt by Dec. 31. If that fails, the town’s 2025 debt would be pushed into the new year and added to 2026 taxes.

If that first option is rejected, voters will take up a second option to authorize selectmen to redeem the CD and use $423,511.95 to prepay a portion of 2026 county taxes.

Machias voters approved a prepayment plan this week, as did voters in Jonesport.

There was no opposition Wednesday in Jonesport to a plan for the town to borrow $375,088.26 from its surplus account to pay its share. Taxpayers will repay the fund over five years at 1 percent interest.

Like Beddington, Milbridge and other towns that have opted not to act in 2025, Pembroke Selectman Russell Leighton said Friday the town has never received an official invoice from the county for its share of the debt. Pembroke did get a notice about the $160,893 obligation and a request for prepayment, but Leighton said the notice alone does not mean the town has to pay.

He said Pembroke is going to wait for an invoice.

We will continue reporting on this story as other Washington County municipalities make decisions about debt payments.

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Lubec headed to special town meeting on county debt payments in two weeks: Loud voices, a louder gavel and clashing views consumed Wednesday’s board meeting as selectmen debated wording for options to present to voters. Read this story by Judith Meyer

Machias voters approve $314,152 loan to pay share of Washington County’s tax anticipation note: Voters at a special town meeting also approved a commercial solar energy systems ordinance and a wind energy systems ordinance, and authorized the Select Board to enter into long-term lease agreements. Read this story by Evan W. Houk

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