Commission approves up to $16 million tax anticipation note from Machias Savings Bank

The Penobscot County Commission approved a tax anticipation note (TAN) offer from Machias Savings Bank providing a maximum principal of $16,000,000 with interest at 5.301% calculated on amounts withdrawn and a $10,000 fee. The facility is available for drawdown through Dec. 31, 2026; interest and the fee will be paid at the close of the note.

The treasurer described the facility to commissioners: "We'll be up to 16,000,000. The interest rate will be 5.301%, and it'll be calculated on what we withdraw," he said, and added that the $10,000 fee and interest would be paid at closing. Commissioners discussed timing, an outstanding audit and cash-flow analysis, and then voted to approve the TAN proposal as presented by the treasurer.

The commission recorded the motion as approved without a recorded roll-call tally in the transcript. The transcript indicates the draw structure is flexible — the county need not take the full amount at once, and interest applies only to funds actually borrowed.

Next steps: county finance staff will coordinate draw procedures with Machias Savings Bank and monitor cash flow and audit timelines before drawing funds.