Paris may need to borrow $800k

PARIS — Town Manager Amy Bernard's January prediction that the town would run out of operating funds by March appears to have been spot-on.

The board of selectmen, during its meeting Monday, authorized Bernard to arrange a short-term Tax Anticipation Note to cover a two-month cash shortfall.

As of February 25, Paris had $125,369 cash on hand, enough to cover payroll for the next two weeks, Bernard told the board. In order to pay any bills beyond payroll, it would need interim borrowing, she said.

Bernard estimated the town needed $800,000 to carry it over until property tax payments were due in May.

The town owes around $197,000 per month to the school district, as well as $80,000 in payments on a truck, expenses related to vehicle repair and maintenance and payments to C.N Brown, Bernard told the board.

Interest on a six- to eight-week TAN from Androscoggin Bank would be between three-quarters of a percent and one percent as well as roughly $1,000 in legal fees, Bernard said.

Selectman Gerald Kilgore asked Bernard if she was sure the amount was enough to carry Paris through, noting it would be worse to take out the loan and then realize it wasn't enough.

Bernard told the board she would have a clearer idea of how much the town needed as she prepared the TAN.

"If it's going to be something larger, then I'll wait to sign the documents until [March 11] then we'll discuss the amount we truly need, but I believe $800,000 will get us through the next two months."