MILLINOCKET  — Officials in the Maine town of Millinocket say the tax breaks being requested by a company hoping to buy two area paper mills would force the elimination of seven municipal jobs, including two police officers.

Millinocket officials are negotiating with an investment group interested in buying mills in Millinocket and East Millinocket. The company is hoping to reduce its tax burden.

Millinocket Town Manger Eugene Conlogue’s proposed budget for next year includes a $1.15 million loss in tax money. Half of that money would be cut from the school district.

Conlogue tells the Bangor Daily News the possible creation of 120 to 150 jobs at the mill would help the region’s economy but would have no direct impact on the municipal budget.