Selectmen hold off on TAN, at least for now

LEBANON - Selectmen expect to have property tax bills for October sent out around Sept. 10, a little later than normal, as they move closer to setting the tax rate for the current fiscal year.

In the meantime, they have been able to use the town’s cash on hand to hold off utilizing a TAN loan.

Selectmen were updated by town treasurer Jeanette Lemay on Thursday that the town may be able to go two, maybe three, more weeks on its own before a TAN, or tax anticipation note, may become necessary.

A $441,000 school payment due at the end of September may be a final catalyst for a short-term TAN.

TAN loans, or tax anticipation notes, are normally short-term loans used to keep the town running while waiting for property tax revenues to come in.

Meanwhile, property tax payments from mortgage carrier escrow accounts should start flowing into town coffers by late September, Lemay said today.

The town recently negotiated a $1 million TAN credit line with Kennebunk Savings at an interest rate of 1.9 percent, however, no money has actually been borrowed yet, Selectmen Chairman Ben Thompson said.