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Board discusses 18‑month budget timing to reduce borrowing costs by about $30,000
Summary
Chair presented a proposal to shift to an 18‑month budget cycle that would change tax timing and could reduce the town's borrowing costs by roughly $30,000; staff will model impacts for residents.
The chair told the board that moving to an 18‑month budget cycle could improve the town’s cash flow and reduce borrowing costs associated with current tax timing. He said an 18‑month model would require different tax timing (payments every six months rather than once a year) and that a worked example would help residents understand the tradeoffs.
"We would pay taxes every 6 months instead of paying it once a year, which make the cash flow better... it would save us $30,000," the chair said. Board members noted that county and school budget increases will influence any net tax change and that the change would require careful planning rather than an immediate switch. Staff were directed to prepare a model illustrating the effect on a hypothetical $100,000 property and to explain transition timing.
