Paris board approves borrowing up to $645k

PARIS — The town intends to borrow up to $645,000 to overcome a cash flow shortfall and pay its bills until property tax revenue begins flowing in May.

Selectboard members authorized Town Manager Amy Bernard and Board Chair Sam Elliot to take out a short-term Tax Anticipation Note from Androscoggin Bank at their meeting Monday.

"It's not that the town's broke," Elliot said. 

"This is a relatively common process for towns to borrow money in anticipation of taxes," he said.

Late last month, Bernard informed the board it would need to borrow around $800,000 to cover its expenses through March and April.

On Monday, Bernard revised that figure, noting the town still had a little more than $87,000 cash on hand.

According to the TAN agreement drawn up between the town and Androscoggin Savings Bank, the town will be charged .85 percent on the 107-day loan.

The TAN allows the town to incrementally draw down the requested amount and therefore, it may not need to repay the entire loan.

Bernard said the loan should cover two payments to SAD 17, payroll, an $80,000 payment to H.P. Fairfield and an $85,000 payment to C.N. Brown.