Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Selectmen set 2020 mill rate, approve TAN and move $150,000 from surplus
Summary
After reviewing bids for a Tax Anticipation Note and discussing revenue projections, the Selectmen set the 2020 mill rate at 1.157 and voted to take $150,000 from surplus to offset taxes; they also authorized issuance of a TAN (up to $550,000) under state statute to bridge cashflow.
Selectmen opened bids for a Tax Anticipation Note (TAN) and reviewed municipal revenue and reserve projections in light of potential COVID‑19 impacts. After comparing bids, the board awarded the TAN and then voted to set the 2020 mill rate at 1.157 while drawing $150,000 from surplus to reduce the tax burden.
The board passed the TAN authorization resolution under Title 30‑A, Section 5771 (Maine Revised Statutes) to issue up to $550,000 in anticipation of tax receipts, with the note to mature on December 31, 2020. Members discussed bond counsel requirements and compared interest rates across several local banks before selecting a bidder.
Why it matters: The TAN provides short‑term liquidity for municipal operations; setting the mill rate and supplementing with surplus funds affects taxpayers' bills and the town's reserve levels during an uncertain fiscal year.
Next steps: Treasurer and chairman to finalize note details and complete closing; staff to monitor tax collections and report back to the board.
