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Penobscot County sets 6% delinquency rate, draws on ARPA for cash flow and selects Machias Savings Bank for short‑term tax anticipation note
Summary
Treasurer reported all 2024 tax levies paid; the commission set the delinquency interest rate at 6%, approved short‑term draws from ARPA for cash flow and awarded a nine‑month tax anticipation note to Machias Savings Bank at a rate of 5.049%.
Treasurer Glenn reported to the Penobscot County Commission on March 11 that the county’s 2024 tax levies have been paid in full.
The commission set the delinquency rate for late property‑tax payments at 6% for the 2025 levy, matching the prior year’s rate, after brief discussion. The motion to set 6% passed unanimously.
On short‑term cash‑flow management, the treasurer reported two short ARPA‑backed internal draws—$2 million on February 4 and another $2 million on March 11—and noted accrued interest due of roughly $5,200 to date. The commission approved the ARPA transfer process (internal short‑term cash draw to be repaid with interest when revenues clear); commissioners described it as customary when awaiting anticipated receipts.
For longer short‑term borrowing, the county opened two bids for a nine‑month tax anticipation note. Machias Savings Bank offered a tax‑exempt rate of 5.049% for $11,200,000; Camden National Bank submitted alternate terms, including a deposit‑relationship option near 5.3%. Commissioners moved to accept the Machias Savings Bank offer and proceed with the note; the motion carried unanimously.
Treasurer and commissioners said the note will be designated a qualified tax‑exempt obligation and that the county will return the borrowed funds with interest from expected receipts.
