Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
County declines request to accept municipal tax payments in installments, cites cash-flow and interest risks
Summary
Administrator Jones relayed a request from Woolwich Selectperson and State Representative Allison Hepler to accept municipal tax payments in increments; commissioners declined action, citing lost interest revenue and cashflow risks, and noting the state's 8.5% late-payment interest rate.
Sagadahoc County commissioners on Sept. 10 discussed and declined a request from Woolwich Selectperson and State Representative Allison Hepler to permit municipalities to pay county property taxes in installments.
Administrator Jill Jones said the idea had arisen elsewhere but county practice does not allow installment municipal payments. Jones noted that accepting split payments would reduce interest revenue and could require the county to seek short-term borrowing to cover operations, citing payroll and bond obligations: "Salaries are approximately $500,000 per month, TBRJ payment $216,000, Insurances $115,000, and $800,000 is due in November for the annual bond payment," she said. Jones also said the state-mandated interest on late municipal tax payments is 8.5%.
Treasurer Gail Eaton added that in Topsham roughly 50–60% of tax payments come via escrow, which affects timing. Commissioners expressed concern about balancing the end-of-year cash position and declined to alter county practice; no action was taken on the request during the meeting.
