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Stonington board sets mil rate, taps surplus and authorizes short-term borrowing amid pandemic uncertainty
Summary
Selectmen set a mil rate, voted to use $150,000 from surplus to partially offset taxes and authorized a $550,000 tax anticipation note (TAN) to manage cashflow during the pandemic-driven revenue uncertainty.
The Town of Stonington Board of Selectmen moved to stabilize municipal finances during 2020’s pandemic disruptions by setting the mil rate, drawing on surplus and authorizing short-term borrowing.
Selectman Evelyn Duncan presented tax-rate calculations and recommended setting the municipal mil rate at 1.157 while using $150,000 from surplus to reduce the tax burden. The board agreed to those parameters and proceeded to authorize a Tax Anticipation Note (TAN) of up to $550,000 to mature on December 31, 2020, to cover possible timing shortfalls in property tax receipts.
At a public bid opening, the board selected a TAN proposal from Machias Savings Bank; the motion to authorize the borrowing and related terms passed unanimously. TM Billings and finance staff explained that the TAN and the surplus draw were precautionary steps to preserve liquidity in case of delayed or reduced tax collections and to avoid emergency cuts to essential services.
The board also reviewed capital priorities and asked staff to revisit nonessential projects and reserves as part of an overall pandemic-related budget review. Selectmen emphasized they would monitor collections and repay the TAN when tax receipts are received.
