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Selectmen authorize up to $550,000 tax‑anticipation note to cover 2020 cashflow
Summary
To smooth municipal cashflow amid pandemic uncertainty, Selectmen authorized issuance of a Tax Anticipation Note of up to $550,000, maturing Dec. 31, 2020. The vote was unanimous and included provisions authorizing the Treasurer and Selectmen chair to finalize terms.
The board voted unanimously to authorize issuance of a Tax Anticipation Note (TAN) for up to $550,000 in anticipation of 2020 tax receipts. The motion described the note's maturity (December 31, 2020) and authorized the town treasurer and Selectmen chair to finalize interest terms and sale details.
TM Billings explained that the TAN would provide short‑term liquidity to cover municipal obligations if tax collections were delayed by the pandemic and economic disruption. Selectmen reviewed competing bids and selected a lender consistent with the town’s financing policy.
Why it matters: A TAN is a short-term municipal financing tool to manage cashflow before tax receipts arrive; it does not increase tax rates but creates a short-term obligation to be repaid from tax collections.
What happens next: The Treasurer and Chair will execute the note and take administrative steps to complete the sale; the town will report details of the final interest rate and purchaser once the transaction is executed.
