MADISON, Maine — Selectmen in Madison are proposing a plan for the town to establish a credit line and borrow money in order to mitigate the effects of a drop in valuation of Madison Paper Industries on taxpayers.
Residents will be asked to approve the establishment of a revolving loan that will allow the town to spend, borrow and repay up to $2.5 million as needed at a town meeting scheduled for Sept. 16.
The Morning Sentinel reports that along with the establishment of the line of credit, residents also will be asked to approve an increase in the tax rate.
In August, selectmen learned from the board of assessors that the value of local paper mill Madison Paper Industries, the town's largest taxpayer, had dropped from $229.7 million to $80 million.