by Mary Grow

At their June 10 meeting, China’s Tax Increment Financing (TIF) Committee members completed recommendations on revising the document that governs the use of TIF funds. (See also the June 6 issue of The Town Line, p.8.)

They recommended deleting two accounts: the revolving loan fund intended to help businesses in town, which has been used only once, and the job training account, which has never been used.

They proposed adding an account, a second project at the causeway at the head of China Lake’s east basin. TIF money paid for previous improvements there: rebuilding the bridge across the lake’s major inlet stream, adding sidewalks and parking spaces and improving the boat landing.

The new project tentatively includes extending the sidewalk westward on the south (lake) side of the road, adding a floating dock from which people can fish and making improvements at the boat docks. Cost will be determined as soon as possible.

Committee members are aware that there is too little parking area for vehicles hauling boat trailers, but there is not space to expand the parking.

Committee members recommended increased funding for two existing projects that have regularly used all their allotments.

— The project named “Environmental Improvements,” which includes China Lake water quality, was listed to receive a maximum of $30,000 for each of the fiscal years 2024, 2025 and 2026. No amount was listed thereafter. Committee members recommended $50,000 a year until the TIF ends in 2045.
— The “Trails” project, which has funded trail work by the Four Seasons Club townwide and by the Thurston Park Committee in Thurston Park, was to receive not more than $65,000 a year through 2045. Committee members recommended $80,000 a year.

Funds to match grants, a different category from the projects, have not been spent, but committee members said they could be. That account has been accumulating at $15,000 a year; its allocation is scheduled to end June 30, 2026. Committee members recommended extending it to 2031.

The TIF enabling legislation says grants to a municipality or a plantation can be matched. One candidate for a match is the China Lake Association, its president, Stephen Greene, said. Committee member Jamie Pitney, a lawyer, is unsure whether the state Department of Economic and Community Development, the TIF program’s overseer, would approve a grant to an organization.

Committee members know approximately how much unallocated, and allocated but unspent, money is in the TIF program now. They calculated how much money they recommend transferring from unused accounts to overused ones. Combining the figures, they decided their recommendations for additional funding are financially feasible.

They further discussed estimates of FY 2024-25 TIF income. The income comes from taxes Central Maine Power Company pays on its transmission line that runs north-south through China and on its South China substation.

Each year’s TIF income therefore depends on two factors: the valuation of the CMP properties and the town’s tax rate, or mil rate (the amount of tax for each $1,000 of valuation). The valuation waits on completion of a review by the town’s assessor; after that work is finished, the assessor will recommend a range of tax rates to generate money to cover projected 2024-25 expenses.

Select board members will then set the rate. In 2023, they made the decision at their Aug. 28 meeting, setting the current 12.26 mil rate ($12.26 for each $1,000 of valuation).

TIF committee members scheduled their next meeting for Monday evening, Aug. 5. They expect by then to have firmer numbers on most of the program, even without the 2024-25 tax rate.

Their goal is to present a revised TIF document to China voters at the polls on Nov. 5. If voters approve it, the appropriate state officials’ approval is also needed, a process likely to take several months.

by Mary Grow

The China select board’s June 3 meeting was mostly spent on building-related issues. Board members totally redesigned the plan for their long-discussed storage vault at the town office, and awarded bids for other town projects.

Over the past several years, board members, building committee chairman Sheldon Goodine and others have talked about adding a fireproof vault in a small building attached to the south side of the present office on Lakeview Drive.

At their March 25 meeting, board members awarded a bid to build the addition to the lower bidder, Ralph McNaughton Construction, of Corinna, for $267,489.20.

At the board’s May 6 meeting (see the May 23 issue of The Town Line, p. 3), Goodine and select board member Blane Casey proposed a different plan: convert part of the large garage behind the old town office into dry storage; move some of the papers from the back storage area in the town office building to the garage; and move miscellaneous items from the present fireproof storage area off the town office’s meeting room to make more space there.

Goodine prepared a draft plan for the garage before the May 20 board meeting, but wasn’t able to be there to discuss it.

At the June 3 meeting, he pointed out how much money the town is likely to save if this plan works. After inspecting the garage, board members voted to ask McNaughton and engineer Keith Whittaker, of B. R. Smith Associates, of Presque Isle, to make their own inspections.

Goodine was honored with a Spirit of America award on May 20, “for leadership in China’s Golden Agers senior program and service to the South China church, library, Masons and American Legion.” On June 3, Casey added Goodine’s 65 years with the South China Volunteer Fire Department.

Board members awarded the 2024 roadside mowing contract to Pierce Works, LLC, of China, for $10,300 for two mowings, plus $4,280 for roadside brush-cutting. Mileage is listed as 47.29 miles. Hapgood said the company has had the contract in the past and the work has been satisfactory.

Construction bids were awarded as follows.

— To install a PFAS (per- and polyfluoroalkyl substances) water testing and water filtering system at Frank Soares’ near the China transfer station, EverClean Water & Radon Technologies, of Fairfield, $4,940, after a discussion of options with company owner Shane Reitze. State testing found Soares’ water contaminated, presumably from leachate from the closed landfill just north of the transfer station.
— To reroof the barn near the town office, Williams Construction Company, of Brewer, for $16,630.
— To reroof part of the town office building, again William Construction Company, for $23,560.

Williams’ figures are to be negotiated, since the company has two projects on the same site.

In other business, Hapgood read two letters. One was from someone having a new home built in China, praising the town office staff. The other was a letter of introduction from China’s new summer economic development intern, Gracie Stagnito.

The next regular China select board meeting is scheduled for Monday evening, June 17.

by Mary Grow

Members of China’s Tax Increment Financing (TIF) Committee met May 29 to continue discussing proposed changes in China’s TIF document.

Focus was on the different projects for which TIF funds are appropriated, specifically which ones are not spending their full appropriations and which ones need more money.

Committee members got through five items before several members had to leave, ending discussion. Their recommendations are:

— For expanding and improving broadband service, continue at $30,000 a year.
— For the South China boat landing, continue at $7,500 a year.
— For the cost of funding town-created economic development programs, a reduction from $35,000 a year to $25,000 a year. The program spends under $15,000 a year, mostly to hire a summer intern who focuses on economic development.

If the time town office staff spend on TIF-eligible work were charged to TIF, more money would be needed. Committee members discussed the additional record-keeping that would be necessary; when the town manager attended a two-hour TIF-related meeting, simple to note and prove, but what about brief phone calls spaced through the week?

— For economic development events (mostly China Community Days and China Ice Days), increase from $15,000 to $25,000 annually, to allow for additional events.
— For marketing China as a business location, delete the currently-scheduled reduction from a maximum of $25,000 annually to $5,000 annually beginning July 1, 2026; instead allocate $20,000 a year from 2026 through the end of the TIF in 2045.

In cases where a project had a substantial unspent balance, committee members recommended putting left-over money back in the program development fund, the section that committee member Jamie Pitney called “the common pot.” The money would then be available for re-allocation to a project that has been spending all its TIF money and needing more.

The committee will meet again Monday, June 10, at 6 p.m., in either the town office meeting room or the nearby former portable classroom. Remaining topics include environmental improvements; the revolving loan program; job training; trails; and matching money for grants.

The list from which committee members are working is pages 28 through 36 of China’s 2021 Second Amended TIF Program. It is on the website china.govoffice.com, under the Tax Increment Financing Committee, which is under Officials, Boards and Committees.