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Strafford County delegation approves $17.98 million tax-anticipation borrowing
Summary
The Strafford County Executive delegation voted 10–4 to authorize a second-round tax-anticipation note up to $17,980,000 for 2025, a cash‑flow measure officials said is standard practice while waiting for December tax collections. Members requested a bipartisan review of longer-term collection options.
Strafford County’s executive delegation on May 16 approved a motion to authorize a second round of tax‑anticipation borrowing up to $17,980,000 to cover county cash‑flow needs through the remainder of 2025.
Representative Lontain introduced the measure, saying the borrowing “lets us keep the lights on” while the county awaits tax collections in December. Officials and staff described the request as routine: the delegation borrowed $24 million for the first half of the year and the current authorization covers the second half, bringing the total authorized borrowing for 2025 to roughly $41.98 million.
During the discussion, Representative Penza pressed for a clearer estimate of interest costs, asking, “Where’s the amount of interest that’s paid on that?” Staff said the precise rate will be determined at public sale; an estimated rate of about 3% was cited based on the first round but the final interest figure depends on bids.
Deputy treasury staff explained the county must borrow because most local tax revenues are not collected until mid‑December. Several legislators recommended exploring statutory changes or other arrangements so municipalities could pay the county more frequently, but staff said changing collection timing would require a legislative change and coordination with towns and cities.
The motion was moved and seconded and carried on a roll-call vote (10 yes, 4 no). The delegation asked staff to follow up with a small bipartisan revenue committee to study alternatives to repeated borrowing and to consult municipal leaders about the operational impacts of any collection‑timing change.
What happens next: staff will proceed to solicit bids for the TANs and report back to the delegation on results and interest costs. The proposed revenue committee will meet to examine whether statutory or administrative changes could reduce future borrowing needs.
