Wiscasset selectmen discussed how best to pay back a $2 million bond used to cover the cost of the town withdrawing from Regional School Unit 12.

At Tuesday night’s meeting, Chairman Ben Rines Jr. said the loan payments on the bond are set to begin on Jan. 15. The problem is the monies needed to cover the loan payments weren’t included in this year’s budget. Under the present agreement, the town would owe $120,000 for the first six months of the new year. Rines said in order to cover the payments the board would need to hold a special town meeting and get authorization from the townspeople.

Shari Fredette, town treasurer, explained on the advice of the town auditor, the town went with a 10-year financing plan for the loan. She told selectmen, the town has spent $1.7 million of the $2 million loan. “We still have one bill that we owe the RSU which will use up the balance and then some,” she said. The amount given was $268,000.

Selectman David Cherry suggested the board might want to consider looking at extending the terms of the loan to 15 or 20 years.

Town Manager Marian Anderson said that was one option. Another might be to renegotiate the terms of the loan to make quarterly, semi-annual or annual payments instead of monthly ones.

Rines said extending the loan would mean the town would be paying back more in interest, but  he agreed that comparing the options was in the town’s best interest.

Anderson will meet with bank officials to look at both lengthening the loan and exploring different payment options. At Rines’ suggestion, the board will then share this information with the budget committee.

The goal is to have this information in time for the board’s next regular meeting Dec. 15. “No matter how you look at it, it’s going to impact next year’s budget,” Rines added. 

 Voters approved the loan by a ballot vote in November 2013.