CURRENT PROBLEM - CASH FLOW PROBLEM FOR TOWN of ALBANY EXPLANATION: PAST SEVERAL YEARS - TROUBLE PAYING TOWN EXPENDITURES AND OBLIGATIONS IN A TIMELY MANNER TOWARD THE END OF EACH FISCAL YEAR IS A GROWING PROBLEM. TOWN GETTING BAD REPUTATION FOR PAYING OBLIGATIONS LATE. THIS IS A HEADS UP ON WHAT COULD BE COMING FORWARD AS THE SELECT BOARD HAVE TO DEAL WITH OR FIND A BENEFICIAL SOLUTION FOR THIS CONTINUING PROBLEM. COST TO IMPLEMENT A SOLUTION WILL BE A CONSIDERATION.

BUDGET TIMELINE - PAYMENT OF OBLIGATIONS vs. TAX COLLECTION FISCAL YEAR IS JANUARY 1 TO DECEMBER 31. TAX YEAR IS APRIL 1 TO MARCH 31. BUDGETS VOTED ON AT MARCH TOWN MEETING IS FOR THE CURRENT FISCAL YEAR BUDGET WHICH STARTED ON JANUARY 1. TAX RATES ARE NOT SET UNTIL THE END OF NOVEMBER. TAXES ARE NOT COLLECTED UNTIL DECEMBER. IN THE PAST WE ARE ACTUALLY PAYING CURRENT FISCAL YEAR BUDGET EXPENDITURES USING THE PREVIOUS YEARS COLLECTED TAXES CONSEQUENTLY WE MANY TIMES HAVE PROBLEMS PAYING THE TOWN’S BUDGET OBLIGATIONS IN THE LAST QUARTER OF EACH FISCAL YEAR. MOST YEARS IT GETS VERY TIGHT AND WE END UP NOT PAYING OUR OBLIGATIONS ON TIME. OUR CURRENT FISCAL YEAR WHICH WE ARE VOTING ON TONIGHT IS A LARGER BUDGET THAN LAST YEAR BY APPROXIMATELY $300,000. BECAUSE LAST YEARS BUDGET (2015) WAS DOWN FROM THE PREVIOUS YEAR’S BUDGET (2014), WE WILL SEE A REDUCTION OF AVAILABLE TAX FUNDS OF APPROXIMATELY $300,000. THIS DEFICIT WILL ALSO APPEAR MUCH SOONER THAN IN PREVIOUS YEARS.

LIST OF POSSIBLE SOLUTIONS: 1. TAX ANTICIPATION NOTE (TANS) a) APPLICATION COST b) INTEREST CHARGES c) TIME TO MAKE HAPPEN 2. BUSINESS TYPE BANK CASH FLOW NOTE a) APPLICATION COST b) ANNUAL FEE ($350) c) INTEREST CHARGES d) TIME TO MAKE HAPPEN 3. SEMI-ANNUAL TAX BILLING ( TWICE A YEAR TAX BILLING) – IN HOUSE a) LABOR COST FOR TWICE PER YEAR BILLING b) MATERIALS COST c) PRINTING COST d) POSTAGE COST 4. SEMI-ANNUAL TAX BILLING ( TWICE A YEAR TAX BILLING) - SUBLET a) COST OF PRINTING, MATERIALS, LABOR b) COST OF POSTAGE c) TIME TO MAKE HAPPEN

SELECTMAN’S DECISION: Selectman are the Governing Body NH RSA 76:15-a Semi-Annual Collection of Taxes in Certain Towns and Cities. – I. Taxes shall be collected in the following manner in towns and cities which adopt the provisions of this section in the manner set out in RSA 76:15-b. A partial payment of the taxes assessed on April 1 in any tax year shall be computed by taking the prior year's assessed valuation times 1/2 of the previous year's tax rate; provided, however, that whenever it shall appear to the selectmen or assessors that certain individual properties have physically changed in valuation, they may use the current year's appraisal times 1/2 the previous year's tax rate to compute the partial payment. II. For the purposes of this section, the lists of assessed property shall be committed by the selectmen with a warrant under their hands and seal directed to the collector of such town no later than May 15. The collector shall mail all the bills for this partial payment no later than June 15. Partial payment of taxes assessed under this section shall be due and payable on July 1. The collector shall receive such payments, give a receipt therefor, and credit the amount paid toward the amount of the taxes eventually assessed against the property, in the same manner as prepayments under RSA 80:52-a. A payment of the remainder of the taxes assessed April 1, minus the payment due on July 1 of that year, shall be due and payable December 1. Interest charged on all taxes not paid on or before the date they are due shall be as prescribed in RSA 76:13, except that, when bills for the partial payment under this section are mailed on or after June 1, interest shall not be charged until 30 days after the last bill is mailed. NH RSA 76:15-b Local Option. – I. Other provisions of law to the contrary notwithstanding, taxes shall be collected in any town or city in a manner pursuant to RSA 76:15-a if said town or city, by majority vote of the governing body, adopts the provisions thereof. A town or city which adopts the provisions of RSA 76:15-a may rescind said adoption by majority vote of the governing body, and the general statutes relating to collection of taxes shall once again apply.

CONCLUSION: COMPARE ONCE A YEAR TO TWICE A YEAR TAX COLLECTION  POSITIVES & NEGATIVES BENEFITS TO TAXPAYERS FOR TWICE A YEAR TAX COLLECTION ONCE A YEAR TAX COLLECTION AT BEGINNING OF THE HOLIDAY SEASON