Kennebunk subcommittee recommends forwarding cash ‘penny policy’ to full board

The Town of Kennebunk Finance Subcommittee on May 26 recommended that the full Select Board consider adopting a Penny Policy to standardize how cash transactions are handled now that the federal government ceased penny production in November 2025.

Finance Director Kayla Tierney reviewed a draft policy that would round cash transaction totals to the nearest five-cent increment. The draft notes that pennies remain legal tender but that banking institutions are no longer receiving pennies from the Federal Reserve and are not filling penny orders. The policy would not apply to transactions governed by statute, including real estate and personal property tax payments, liens, vital records, dog licensing, motor vehicle and boat excise taxes, and plumbing permit fees; the draft says any change would be subject to new federal, state or local legislation or guidance.

The subcommittee—members Kevin Therrien and Leslie Trentalange were present, with William Ward Jr. absent—voted 2 in favor, 0 opposed, to forward the proposed policy to the full Select Board with a positive recommendation. The minutes state the Finance Director presented the draft for review; no final town policy was adopted at the subcommittee meeting. The full Select Board was set to consider articles 2 and 3 at its regular meeting later that evening.

If adopted by the Select Board, the policy would provide a consistent approach for cash handling while preserving statutory exceptions identified in the draft. The town will update the policy if further legislative or administrative guidance changes the legal framework for rounding statutory fees.