MINOT — Selectmen agreed Monday that the town should continue to maintain its current policy regarding the amount of money it should keep in the fund balance.
The latest auditor’s report had recommended that the town set a minimum level for the fund balance which, when reached, would trigger the process of seeking a tax anticipation note.
Selectman Eda Tripp said auditors generally recommend town officials maintain a balance equal to what it takes to run the town for three months.
However, the town sometimes finds that reserves are temporarily short of what the auditors might like to see. That’s because its fiscal year runs from Feb. 1 to Jan. 31, the tax rate is set in August and bills are sent in September.
“But I’ve been handling this for 16 years,” Tripp said, “and the tax money has always come in and we haven’t had to take out a tax anticipation note.”
By keeping a close eye on reserves, Tripp said, the town has avoided the cost of interest on money borrowed in anticipation of taxes received and saves more than the $1,000 or so it takes to process the loan in the first place.
Town Administrator Arlan Saunders told the board that the auditor’s other recommendation has been addressed.
Auditors had suggested that all Fire Department invoices be funneled through town accounts.
In a related matter, which helps complete the transfer of resources and responsibilities of the West Minot Fire Co. to the Minot Fire Department, Saunders reported that he has signed, in the name of the town, a revised lease for the West Minot Fire Station with property owner Sam Whittemore for the 47 years remaining on the 99-year lease of the property.
The signing clears matters so the property can legally be carried on the town’s insurance policy.
Saunders also reported that it appears the owners of two properties the town foreclosed on in January for failure to pay property taxes will not be redeeming them by the March 31 deadline.
Highway Supervisor Scott Parker reported that the department has received the new highway truck.
Send questions/comments to the editors.
