Sec. A-7. Property taxes. Greenings Island territory remains a part of the Town of Southwest Harbor for all purposes including liabilities, obligations and the collection and disbursement of property taxes up to the effective date of separation and the Town of Southwest Harbor shall maintain its customary level of service to the Greenings Island territory until that date. After that date, each municipality is separately responsible for raising and collecting the revenues necessary to fund its respective government.

PART B

Sec. B-1. Other duties and responsibilities. The Town of Southwest Harbor and the Town of Greenings Island shall allocate duties and responsibilities between themselves as they mutually determine to be necessary and appropriate and shall negotiate with each other in good faith.

Sec. B-2. Agreement binding; binding arbitration. Negotiations under section 1 of this Part must be completed by January 1, 2000, subject to a mutually agreed upon extension. If the parties reach agreement by that date, the agreement must be reduced to writing and is final and binding on the Town of Southwest Harbor and the Town of Greenings Island upon incorporation of the Town of Greenings Island on July 1, 2000 if the referendum question in Part A, section 2 is approved.

If the parties do not reach agreement by January 1, 2000, the parties shall submit any matters remaining in dispute to a panel of arbitrators and shall reduce to writing all matters agreed upon. The panel of arbitrators consists of one arbitrator selected by the Town of Southwest Harbor, one arbitrator selected by the Town of Greenings Island and one neutral arbitrator selected jointly by the 2 other arbitrators. Each party shall pay its chosen arbitrator and half of the cost of the neutral arbitrator. Determination of disputed matters by the panel of arbitrators is final and binding on the parties. The arbitration must be administered under the auspices of the American Arbitration Association and, except for the selection of arbitrators, is governed by the commercial rules and procedures of the American Arbitration Association. The concept of "last best offer" must be used. These issues must be resolved no later than March 31, 2000.