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Strafford County plans $24 million tax-anticiaption borrowing and early-2025 bond sales to cover cash flow
Summary
County finance staff told commissioners they will secure $24 million in tax anticipation notes to fund the first half of 2025, estimate interest costs and plan to issue bonds for capital projects early next year while pursuing bond ratings and monitoring market rates.
County finance staff told commissioners the county will secure short-term tax anticipation notes (TANs) to cover cash-flow timing and payroll while awaiting property-tax receipts. The administration said it has authorization to seek $24,000,000 in TANs for the first half of 2025 and will adjust final interest-cost estimates after bids close before formal budget approval.
Why it matters: Strafford County receives roughly half its annual revenue in December from cities and towns and relies on short-term borrowing to meet early-year obligations. Officials said borrowing twice a year is standard practice and explained how federal rules and municipal cash cycles shape their approach.
Details staff gave include the $24 million TAN request and an illustrative interest-rate estimate used in the draft budget; staff said they included a 3.2% example rate for one calculation and will update the number after bids. The finance team also described plans to issue longer-term bonds in late January or early February for capital projects, budgeted bond counsel and advisor fees, and the cost of obtaining a Moody’s rating.
Officials emphasized the county’s capacity to borrow: current long-term debt is low relative to a cited statutory debt limit (staff mentioned a roughly $400 million limit and noted the county is far below capacity). The county will time issuance to market movements and pursue competitive bids; staff said Northway Bank has been a recurring, low-cost lender for tax anticipation financing.
Next steps: staff will finalize TAN bidding, report final interest costs to commissioners ahead of budget approval, and complete official statements with financial advisors before issuing bonds for CIP needs.
