FARMINGTON — Town officials and residents have different opinions on changing the town’s fiscal year from the calendar to a July-to-June set-up.

“The (July-to-June) fiscal year system just allows for a lot better, and more accurate budgeting,” Town Manager Erica LaCroix said at the Feb. 25 selectmen meeting to discuss the issue.

The budget year starts in January and the first taxes aren’t collected until November, she told the board in December. And changing the fiscal year could be accomplished with a short-term six-month budget covering January through June, followed by a 12-month budget starting in July. “Taxes on the six-month budget would be due in the spring, and taxes on the full year budget would be split into a fall and spring payment. This will not cost taxpayers any more in their tax bills, it just changes the timing, and will ensure that the town’s fund balance remains liquid until revenues start coming in.”

LaCroix admitted the transition could be hard for taxpayers.

Several residents shared concerns about making a change.

Attorney Paul Mills said he has attended numerous meetings in communities around the state, worked with Farmington in 2003 and again in 2010-2011 when changing to a fiscal year was not done. “The introduction of the July 1 year has an unavoidable, abrupt delivery,” he said. Taxpayers will pay 12 months in November of the last calendar year; six months in the following spring; then another six months the following November, he said.

In the spring taxpayers are paying off heating bills, holiday expenses and income taxes, Mills said.

Other points he made for not making the change include:

• Increases in county and school assessments would be absorbed in one year.

• Investing tax revenue obtained six months earlier to generate investment income is high risk.

• A July-to-June fiscal year inflicts penalties on real estate buyers due to the April 1 date for ascertaining ownership and collecting taxes.

• Town reports would not be the same unless town meeting dates were changed.

• The town meeting date would probably change; June town meetings see less attendance.

LaCroix said for every $100,000 the school budget goes up, it costs the average taxpayer $13 to $23. Having the three-month fund balance available is important when borrowing is needed, because an independent bond rating company uses that information to set rates, she said.

The town meeting date can be set by selectmen, LaCroix said. It makes sense to go a bit later, it doesn’t have to be June, she said.

If Farmington had tax revenue earlier in the year, needed equipment could be purchased without borrowing, she said, which directly benefits the taxpayer.

Resident Bill Crandall said he would prefer any interest being earned go into his account rather than the town’s.

Erik Johnson of Sandy River Farms said he buys most supplies in the spring. He relies on Mother Nature and he doesn’t know how much he will get for his crops until late fall. The past five years he has had to pay interest. “I have a spending problem,” he added. “You may have to look at your spending problem.”

While sympathetic to farmers and others, LaCroix said, “My role is to point out the best way forward for the town. “It’s not my will, it is up to the board. There is no perfect answer. We are just discussing at this point.”

Chairman Joshua Bell said valid points were made and he wants to stay with the current system until the revaluation is completed.