CALAIS — The City Council voted unanimously Thursday to authorize using municipal funds to prepay Calais’ $381,451 share of Washington County’s tax anticipation note.
The transfer to the county is scheduled for next week.
Councilor Michael Sherrard, who chairs the Finance Committee and opened discussion at a committee meeting held just before the council session, said the choice was straightforward.
“We’ve really only got two options,” he said. “Pay it now or pay it later.”
Even so, Sherrard said there were several ways to make the payment, depending on which accounts or loan lines were used and how repayment was planned.
Finance Director Crystal Gallina, who also serves on the Washington County Commission, outlined four options. A fifth was to take no action now and wait until next year to address the tax anticipation note, or TAN.
In the end, the committee recommended using money from the city’s undesignated fund balance, leaving $588,640. Gallina suggested replenishing the fund with 2026 tax revenue, but the council opted to leave it depleted and tabled discussion on how to rebuild it.
In presenting the committee’s recommendation to the council, Sherrard said the city intends to keep a “close eye” on the county’s debt payments over the next four months.
The motion to proceed with the committee’s plan passed unanimously, making Calais the 22nd municipality to prepay in an effort to help bring the county out of its financial crisis.
