NORWAY — The Board of Selectmen has agreed to pay Oxford County part of the town’s annual assessment early, if it doesn’t hurt cash flow. The move was at the request of county treasurer Roy Gedat.

“It may go a long way to solve their cash flow problem,” Town Manager David Holt said.

Oxford County Administrator Scott Cole declined to comment on Gedat’s independent action to contact a few towns about paying early, but said there is an cash flow problem.

“Eighty-three percent of the budget is expended before 75 percent of the money is due in,” he said. “That is the structural challenge the county has.”

The county’s tax levy this year is $5.24 million, with assessments due Sept. 1, four months before its fiscal year ends on Dec. 31. However, towns can pay as late as Nov. 1 without being charged interest. That means the county doesn’t get its money until just two months before its fiscal year ends.

County commissioners develop their budget based on a calendar fiscal year and say they may need to change it to July 1 to June 30 to match many local towns.

Gedat said he has strongly recommended commissioners make the change.

“It does not make sense,” he said of the county borrowing money to pay bills.

“It’s nutty. It needs to change. Borrowing is not the way to do business,” he said.

Gedat said Monday that many towns pay their county assessment in August and a few in July. There was no particular reason why he asked only a few towns to pay earlier, he said, other than to see if there would be any interest in doing so.

“I was trying to be proactive,” Gedat said.

Norway taxpayers voted many years ago to wait until near Nov. 1 to pay the county assessment. It allowed the town to have a greater cash flow and not borrow to pay its bills. Additionally, the town gained a little interest while the money stayed in the bank.

“We don’t borrow in anticipation of taxes anymore,” Holt said.

Selectman Russ Newcomb said he would agree to a partial payment if it did not hurt the town’s cash flow, because the town does not make much interest on the money it withholds until the end of the period.

The town’s assessment is $335,408.

Selectman Irene Millet made a motion at last week’s board meeting to pay half the assessment and not change the previous board’s policy.

Holt agreed, saying as long as his study shows even a half payment will not mean the town has to borrow, the money can go on the next warrant in August for payment.

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