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Penobscot County authorizes up to $11.2M TAN, approves temporary $2M ARPA loan and certifies municipal levy
Summary
The commission unanimously authorized a tax anticipation note (TAN) authorization up to $11.2 million, approved borrowing $2 million from ARPA funds as a short-term cash bridge, and voted to accept the municipal tax levy as presented.
Penobscot County commissioners on Feb. 4 authorized staff to pursue a tax anticipation note (TAN) up to $11.2 million, approved a temporary $2 million internal loan from ARPA funds to cover near‑term cash needs, and voted unanimously to certify the county’s municipal tax levy before bills are sent.
Glenn, the county treasurer, presented the municipal levy materials and valuation information, noting the county’s mill rate moved modestly and some town valuations rose steeply (the transcript cited an average 12% increase with some towns above 30%). On the TAN, county staff explained the $11.2 million authorization represents the largest allowable amount under county calculation rules (projected deficit plus statutory margin). Commissioner Marshall moved and the commission approved the motion to start the TAN process and issue an RFP for that financing level; the vote was unanimous.
Later in the meeting finance staff alerted the commission that cash projections required temporary assistance sooner than anticipated. County administrators requested use of $2,000,000 of previously allocated ARPA funds as a short-term loan to meet payroll and cashflow needs until the TAN is completed and available. Staff said interest would be paid to the ARPA account and the TAN funds would be used later to repay the ARPA balance. Commissioners voted unanimously to authorize the temporary ARPA borrowing.
On the municipal tax levy, the commission reviewed state valuations and the computed levy for municipal billing. A motion to approve the levy was made and carried unanimously, allowing the county to send bills to municipalities.
Ending: County staff said they would proceed with the TAN RFP, repay ARPA when TAN funds are available, and provide documentation of the ARPA loan terms and interest calculations.
