PARIS — Commissioners on Tuesday approved borrowing $2.9 million to pay Oxford County’s bills until property taxes come in later this year.
Because it runs on a different fiscal year than the municipalities that provide the bulk of its revenue, Oxford County is forced to take out a short-term loan every year to finance its operations.
Commissioners Caldwell Jackson, Steven Merrill and David Duguay approved a tax anticipation note from Norway Savings Bank, with a .079 interest rate.
According to County Treasurer Roy Gedat, the county has enough cash on hand to pay its bills through mid-March. After it has exhausted its cash, the county starts dipping into the loan, Gedat said.
Oxford County’s budget covers January through December. About half the towns in the county have a July 1 to June 30 fiscal year.
That means that tax money from municipalities doesn’t start flowing into the county’s coffers until August and some payments don’t come in until November, Gedat said. Oxford County usually pays off its loan in December, he said.
During his tenure as treasurer, Gedat said he has urged commissioners to consider changing the county’s fiscal year to align with municipalities and eliminate the need for borrowing.