County gets OK for loan to cover expenses until tax revenue arrives in Dec.

LACONIA — Borrowed money will be used to pay Belknap County’s operations in the coming months following approval of the loan by the Executive Committee of the County Delegation.

The loan — a tax anticipation note — is taken out every year to cover the cost of operating county functions, including the nursing home, Sheriff’s Department, and Corrections facility, until the communities pay their county tax levy in December.

The county operates on a Jan. 1 to Dec. 31 fiscal year.

By a 4-1 vote the Executive Committee authorized the county to borrow up to $10 million. But County Treasurer Michael Muzzey said he expected the actual amount the county will end up borrowing will be closer to $7 million.

County Commissioner Glen Waring explained to the committee that, under this funding mechanism, the actual amount the county is allowed to borrow is determined by a formula based on the county’s cash flow projections.

The maximum loan amount approved has been $10 million in eight of the past 11 years. The actual amount borrowed in those years has ranged from $7.1 million to $9.5 million, according to information presented to the Executive Committee on Monday.

Executive Committee member state Rep. Norm Silber cast the only vote against the authorization, saying that it was unnecessary to approve the $10 million figure if the actual amount needed was $7 million.

– Michael Mortensen