Stamford Select Board authorizes staff to pursue line of credit to cover tax anticipation note and paving

The Stamford Select Board voted to authorize town staff to accept a line of credit to bridge short-term cash needs tied to a tax anticipation note and upcoming paving work. Town finance staff reported Adams Community Bank offered a $300,000 tax anticipation note at 4.25% due in November, and the town projects needing roughly $469,000 for paving; a proposed $800,000 line of credit could cover both items on a five-year term.

Laurie, who presented the financing options, told the board: "Adams Community Bank has submitted a bid for a tax anticipation note of 300,000. That's right. It's 4.25." Board members debated whether to seek separate short-term loans or a single line of credit; one board member moved permission for staff to accept a line of credit so long as the interest rate did not exceed 5.5%. The motion was seconded and the board voted in favor.

The board emphasized caution about long-term interest-rate risk and the costs of hiring financial advisers. As the finance presentation noted, one lender required use of a financial adviser before bidding on a longer loan; staff said that adviser option would be costly. The board tasked its designated staff to confirm final terms with the preferred lender and proceed to sign the necessary paperwork when the rate is at or below the 5.5% cap.