UPDATE: A heated meeting in Lubec has left residents grappling with an urgent decision regarding the town’s share of a staggering $8 million debt. The Lubec Board of Selectmen has proposed two options for voters to consider in order to address the town’s portion of $423,511.95 owed to Washington County by December 17, 2025.
Tensions escalated during the meeting on Wednesday, where Chairwoman Carol Dennison had to intervene repeatedly to maintain order as frustrated residents voiced their concerns about the county’s financial management. The crux of the matter lies in the county’s request for municipalities to consider prepaying their share of the tax anticipation note (TAN) to avoid incurring interest on future bonds.
The financial distress stems from years of mismanagement, including the underbilling of taxes and the depletion of reserve funds. With the county now unable to meet its operational costs, towns like Lubec are being called upon to step in.
“You don’t have any accountability if you voluntarily give the county this money without guidance,” Dennison warned, emphasizing the need for transparency regarding how the funds would be used for future taxes. A heated exchange erupted when an audience member accused the board of being “stupid” for their handling of the situation, prompting Dennison to demand respect for the board’s authority.
Residents are faced with two potential strategies: cashing in a larger certificate of deposit to fully prepay the debt, incurring at least $8,000 in penalties, or utilizing smaller CDs and reserve funds to manage the prepayment. Selectman Mark Kelley noted that even after penalties, Lubec stands to gain $38,000 by cashing a specific CD.
The looming deadline for these decisions adds pressure as the board prepares to finalize the options presented to voters. A public hearing is set for 5 p.m. on December 17, immediately preceding the special town meeting where residents will vote on how to proceed.
The community’s concerns extend beyond finances; some residents fear potential service cuts, including the possible shuttering of local departments. Selectman Daniel Daley highlighted that the county’s financial crisis could lead to significant operational changes, with key services like emergency medical services and the Sheriff’s Office under threat.
As the board deliberates, it is clear that trust in local governance is at stake. Residents are demanding accountability and clarity on how their tax dollars will be managed going forward.
This situation reflects broader financial struggles within Washington County and raises questions about the future of local governance. With emotions running high and stakes even higher, Lubec residents are bracing for a crucial decision that will impact their community for years to come.
Stay tuned for updates on this developing story as Lubec navigates these urgent financial challenges.
