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Selectmen authorize $550,000 tax anticipation note and set mill rate amid COVID uncertainty
Summary
Selectmen opened TAN bids and approved issuing up to $550,000 in tax anticipation notes to manage 2020 cash flow; they set a mill rate (1.157) and moved $150,000 from surplus to offset taxes while flagging pandemic-related revenue risks.
Stonington — The Board of Selectmen voted to authorize issuance of Tax Anticipation Notes (TANs) of up to $550,000 to cover municipal cash flow for 2020 and set the municipal mil rate at 1.157.
At a bid opening the board reviewed four offers and accepted Machias Savings Bank’s bid after comparing interest rates and bond-counsel costs. "Given the costs of bond counsel, the Machias bid was most favorable when netting out additional fees," TM Billings said.
The board also set the mill rate and authorized taking $150,000 from surplus to reduce tax burden for 2020. Selectmen said they wanted to preserve liquidity in case pandemic-related tax delinquencies or revenue shortfalls materialize.
Why it matters: TANs are short-term borrowing that municipalities use to bridge timing gaps between expenses and tax receipts; the decision balances current tax relief with borrowing costs and contingency planning for COVID-19 impacts.
What’s next: TM Billings will execute the TAN paperwork and coordinate with bond counsel as needed. The board said the town would monitor collections and revisit capital projects if revenues slow.
Ending: With the vote the town has short-term borrowing authority in place to meet payroll and operating needs while tracking pandemic-driven fiscal uncertainty.
