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Commissioners delay decision on allowing towns to split county tax payments, seek contract approach
Summary
Somerset County Finance Director presented options for towns to split tax payments and recommended charging towns an additional fee equal to lost interest; the Commission tabled the proposal to allow staff to draft a contract for towns to consider (Resolution 25-121). Madison's town manager said a 4% fee would be reasonable. Vote to table was 4-0.
Finance Director Patrick Dolan provided figures showing potential loss of interest income if the county allowed towns to make two separate tax payments and recommended charging any town that chose that option an additional fee equal to the interest the county would lose. Commissioners asked about legal authority and whether smaller towns would be disadvantaged; Dolan said a fee option would prevent disadvantage if towns chose to split payments.
Madison Town Manager Denise Ducharme described cash-flow pressures in her town and said the example fee of 4% would be reasonable for Madison to avoid taking a tax anticipation note. After discussion, Commissioner Cyp Johnson moved to table Resolution 25-121 so the County Administrator and Finance Director could prepare a contract for towns to consider; Commissioner John Alsop seconded and the motion carried 4-0.
The resolution was not adopted; the County will return with a proposed contract for towns that request split payment arrangements.
