HARTLAND – Was this small Somerset County community on the brink of bankruptcy just weeks ago?

That question has been raised with the disclosure Wednesday that the town of Hartland was among the unnamed communities that Gov. Paul LePage said were “ready to default” in a budget address he delivered Feb. 10 to the Legislature.

Local officials on Wednesday suggested the town’s outlook wasn’t quite that bad, though it had been in recent years.

Selectmen announced in spring 2009 that they had considered having the town file for bankruptcy protection if it was unable to restructure its mounting debt and pay its bills. The town was later able to strike a $1.4 million deal with the Maine Municipal Bond Bank to refinance its debt and acquire another loan.

“We’re in a slow recovery and we’re treading water, basically, but we’re not in default,” Town Manager Susan Frost said Wednesday.

LePage painted a dire financial outlook for the state in his budget address.

“Because whether or not the state defaults, we have a couple of communities that are ready to default,” LePage said. “So folks, it’s a lot more serious than anyone is willing to give it credit.”

After delivering his speech, LePage declined to name the communities he was referring to, drawing criticism from Democrats.

But LePage spokesman Dan Demeritt confirmed Wednesday that Hartland was one of the communities in question. In support of the “default” description, Demeritt cited the recent sale of the local tannery — which has 170 employees and is the town’s largest employer — and the uncertainty of whether the sale would close.

Prime Tanning, which had filed for Chapter 11 bankruptcy protection four months ago, might have shuttered the tannery’s doors if the court-approved sale had failed. Kentucky-based Tasman Industries completed its $6.5 million purchase of the plant just two days after LePage’s remarks.

On Feb. 12, voters at a special town meeting approved a deal with Tasman Industries that establishes a new cost-sharing arrangement for the wastewater-treatment and pollution-control facility, of which the tannery is the biggest contributor. The facility also serves area residents.

The new arrangement will cost the town slightly more, increasing town taxes by 48 cents per $1,000 of property value. But without the tannery contributing, town officials estimated that taxpayers would pick up an additional $450,000 cost to run the facility, increasing taxes by $3.10 per $1,000 of property value.

Philip Congdon, commissioner of the state Department of Economic and Community Development, which assisted with the tannery sale, said Wednesday that he had brought the situation in Hartland to LePage’s attention.

“It would have been a problem had we not been able to close this deal,” Congdon said. “They have a large wastewater treatment facility, it costs money to operate and the lion’s share is paid by Tasman. Without that income, where would they find the funds to keep that system running?”

Frost, the town manager, stops short of saying the town would have been “ready to default” if the tannery sale had failed, but “we would have taken 10 steps backward.”

“We’re a hardship town, but we’re thinking positive,” she said. “We’re not in jeopardy of defaulting with anything, especially not with the sale to Tasman.”

The town’s financial hardships reached a peak in 2008 when selectmen uncovered budget errors that resulted in more debt.

In May 2009, Hartland selectmen announced the possibility of the town declaring bankruptcy if a financial arrangement couldn’t be reached.

In September 2009, the town secured a $1.4 million financial package through the Maine Municipal Bond Bank to spread debt payments and lower property-tax bills about 40 cents per $1,000 of property value.

According to the Maine Municipal Association, the town of Hartland is slated to get about $97,000 less in state revenue-sharing aid this year, under LePage’s proposed state budget.

“Revenue-sharing from the state is going to hurt us, and we’re still waiting for county and school tax assessments to come in,” Frost said. “But it looks fine. I think the town’s on the right road.”