by Mary Grow

Members of China’s Tax Increment Finance (TIF) Committee and its Revolving Loan Fund subcommittee spent much of the March 25 TIF meeting discussing final details of the revolving loan fund they hope will soon be accepting applications. No final decisions were made.

The loans are intended to provide small amounts local businesspeople need when their own funds and commercial loans do not entirely cover costs of a new business or an expansion. Committee members mentioned loans between $5,000 and $25,000. Town Manager Dennis Heath said one China businessman has approached him about a small loan.

The manager, who oversees TIF finances, said $25,000 was appropriated for the loan fund in each of the first two years and $30,000 in the next two years. No money has yet been loaned out. Committee members debated whether the loan fund should continue to grow or whether at some point its funds should be reallocated to other TIF purposes.

Assisted by Kennebec Valley Council of Governments community planner Joel Greenwood, committee members also talked about what they need to do to complete defining the application process; whether they should try to meet soon after an application is received or schedule regular meetings twice or four times a year to review applications; what interest rate should be charged and whether it should be variable depending on factors like collateral offered or length of the loan; and planning to deal with delinquent borrowers.

Heath said China’s state-approved TIF plan allocates $900,000 for loans over the 30-year period of the TIF. Committee members accepted his offer to talk with state officials about amending China’s plan to allow more flexibility in allocating money among needs.

TIF money comes from taxes paid by Central Maine Power Company on its transmission line that runs north-south through China and its South China substation.

Heath and committee members see two ongoing community-wide projects eligible for TIF funding, snowmobile trails managed by the China Four Seasons Club and the annual China Days celebration. One-time projects so far include the causeway work at the head of China Lake’s east basin, now beginning its third year, and perhaps a future application to provide a building in the China School Forest behind China Primary School.

Pending work at the head of the lake includes applying for a state permit to improve the small parking area across Causeway Street from the boat landing, now that Susan Bailey has agreed to sell it to the town; putting the final coat of paving on the new bridge; and designing and building improvements to the shore between the bridge and the boat landing.

If the parking area is approved, Heath expects it will make China eligible to seek a state grant to improve the boat landing. Also, he said, Central Maine Power Company will be changing China’s streetlights to LEDs and adding lights, including one or more along the causeway.

Committee members scheduled their next meeting for Monday evening, May 6, skipping the usual last Monday of the month because Heath said selectmen will meet Monday evening, April 29.

by Mary Grow

CHINA — Town Manager Dennis Heath explained the revised town report and redesigned town business meeting warrant to two dozen residents at an informational session held March 24 at the library in China Village. The 2018 town report is in four sections: the usual lists of officials, overdue taxes, deaths and marriages and information on town organizations, followed by three addenda: a 43-page audit report for the fiscal year that ended June 31, 2018; Heath’s summary and explanation of the budget proposed for the fiscal year that begins July 1, 2019; and the warrant for the April 6 town business meeting.

The town business meeting begins at 9 a.m. Saturday, April 6, at China Middle School, if the 119 voters required for a quorum are present. Pre-meeting presentations and notices are scheduled to begin about 8:40 a.m.

Heath said he started budget preparation in October 2018, working with heads of town departments to develop a budget that would meet their needs without raising taxes for municipal services. The school budget and the Kennebec County budget requirement are outside the town’s control. Summarizing some of the changes, Heath said:

• China will need about $400,000 less for road work because two major culvert replacements were finished last year, with some of the money coming from taxes;
• The public works department will have an additional full-time employee so that no snowplowing will be contracted out and routine vehicle repairs can be done in-house; and
• Expenses have been made clearer by assigning costs to appropriate individuals and departments, instead of having, for example, a separate warrant article lumping all insurances.

The result is elimination of 13 accounts, reduction of the April 6 warrant to 31 articles (there were 43 articles in 2018) and, Heath promised, a meeting that will last less than five hours.

Copies of the report are available at the town office and other public places in town. The manager encouraged voters to read it before the meeting so they will understand for what they are voting.

The budget committee and the selectboard agree in their recommendations on all but two warrant articles, including the major expenditures for administration, public works and the transfer station.

On Art. 9, fire and rescue services, the budget committee recommends$181,499 and the selectboard $171, 199, for reasons firefighters and selectmen have explained (see The Town Line, March 14, page 8, and March 21, page 1).

On Art. 23, asking voters to increase the selectmen’s annual stipends from $1,000 to $1,800, four selectmen recommend approval (the fifth was absent) and five budget committee members recommend denial (Chairman Robert Batteese was the only supporter, with one member absent).