MADISON — Selectmen voted unanimously Tuesday night to send out requests for proposals from four area banks for a $2.5 million line of credit that was approved at a special town meeting as a way to offset a tax shortfall caused by the depressed valuation of Madison Paper Industries.

The decision was made during a selectmen’s meeting in which Town Manager Dana Berry, who has held the position for the last three and a half years, announced he will retire in December.

“After a great deal of discussion with my wife and family, I have decided to retire,” said Berry in a statement at the end of the meeting. “I want to thank the Board of Selectmen and the citizens of Madison for the opportunity to serve and their support. I especially want to thank all town employees for all their efforts and exceptional service they continually provide the community.”

His last day will be Dec. 31.

“I’d like to thank Dana for his years of service to the town of Madison and wish him the best in his retirement,” said Al Veneziano, chairman of the board of selectmen.

During Tuesday’s meeting, selectmen discussed the specifics of the $2.5 million loan and other items related to the unexpectedly large drop in value at Madison Paper, the town’s largest taxpayer in 2013, including a petition to abolish the Board of Assessors and the state valuation of the town.

The four banks that the town will contact for loan proposals are Skowhegan Savings Bank, Bangor Savings Bank, Camden National Bank and the Franklin Somerset Credit Union.

“We have some cash in the bank at this time, so there’s no rush,” said Berry during the meeting.

Berry also presented selectmen with proposals the town has already received from Skowhegan Savings and Bangor Savings. There was brief discussion over asking for proposals from the two other banks in town.

“We have time, and I’d like to see what all the banks in town can come up with,” said Selectman Paul Fortin. In September, residents approved establishing a $2.5 million line of credit, a loan that would allow the town to spend, borrow and pay back money as needed to fund the town budget. The loan was approved as part of a plan to mitigate the impact of a drop in taxable value at Madison Paper Industries by $149 million.

There is no deadline for when the loan must be established. Selectmen voted 4-0 to send out requests to the four banks in Madison, with Selectman Jack Ducharme, a branch manager at Skowhegan Savings, abstaining.

Also at Tuesday’s meeting selectmen unanimously voted to table discussion of a petition asking the town to abolish the Board of Assessors and transfer the duties of that board to the Board of Selectmen. Abolishing the board has been a point of discussion for several weeks following the large drop in value at Madison Paper, which was calculated by the board and their assistant and largely excluded selectmen, who are in charge of making a town budget, from being involved in the appraisal process.

The petition, which was presented to selectmen by the town manager, was signed by 236 residents, though it only required 179 signatures. The next step is to bring the proposal to a special town meeting or the next town meeting, said Berry.

“I think we owe it to the people that signed this petition to move fairly quickly, but we also need to do it right,” said Ducharme.

The town has also received its 2014-2015 state valuation, which is $491,600,000, said Berry. The town has 45 days to appeal and there may be grounds to do so based on the value of the mill, he said. “It would be very, very helpful,” said Berry.

William Van Tuinen, the assistant to the board of assessors, is on the agenda for the next selectmen’s meeting to discuss an appeal.

Rachel Ohm — 612-2368

rohm@centralmaine.com

Twitter: @rachel_ohm

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