Power for TAN borrowing rests with delegation, not with EC

To The Daily Sun,

In the January 25 Daily Sun, there appeared a Belknap County notice for a “delegation” meeting, 11 days prior to the intended meeting on February 5, at 7:00 p.m. On January 26, in the Saturday edition of The Daily Sun appeared a Belknap County notice for an “Executive Committee” meeting, 10 days prior to the intended meeting for February 5 at 6:30 p.m.

The purpose of the EC meeting is to consider “Borrowing in Anticipation of Taxes.” What is absent in the notice is the intended amount to be “borrowed” and under what statutory authorities the request will be made. The EC meetings or delegation meetings are public, but are not a “public hearing” therefore, the public has no right to comment. Moreover, these two public bodies historically will, following its deliberation, vote.

Two laws are applicable for county “borrowing:” one is RSA 29:8. "Whenever the money in the treasury of any county shall be insufficient to meet the demands upon the same, the treasurer, upon the order of the commissioners with the approval of the 'executive committee' of the county convention, and such approval shall not be given until the treasurer has appeared in person before the committee to testify in support of any such request, may 'borrow' such sum as they shall deem necessary for the purpose, and give 'the note of the county' therefore; provided, however, that if the sum to be borrowed, 'together' with the collected taxes of the 'same fiscal year,' shall exceed by 10 percent the total appropriations made for that year by the county convention, the approval of the county 'convention' for such excess borrowing must be secured, unless the convention 'has not acted upon the appropriations for the ensuing year.' Nothing in this section shall be deemed or construed as authority to exceed appropriations made by the county convention," to wit no budget, no spending of any money.

Second, RSA 29:8-b Tax Anticipation Notes (TAN) states in part that the county treasurer, upon order of the commissioners and with the approval of the “county convention” as required in RSA 29:8, may incur debt in anticipation of the receipt of taxes for the financial year “in which the debt is incurred.” Such funds may be used to pay maintenance and operating expenses incurred during the “current financial year" (January 1 to December 31, 2019) and shall include all appropriations approved by the “county convention” for the “current financial year.” To date, no county budget for FY 2019 exist; once again, no appropriation no spending.

The delegation has not resolved the appropriations for FY 2019. No vouchers in fiscal year 2019, absence an annual budget, can take place. "No county commissioner, or elected or appointed county officer, shall pay, or agree to pay, or incur any liability for the payment of, any sum of money for which the county convention has made no appropriation." RSA 24:15

Belknap County not only has the cart before the horse but the EC has no authority to approve any TAN borrowing, the power of which rest with the delegation, which is not listed in its notice.

The delegation has not resolved the appropriations for FY 2019. No vouchers in fiscal year 2019 can have been executed, absence an annual budget. If such vouchers have taken place the commissioner, or elected or appointed county officer, agreed to pay, or incur any liability for the payment of, any sum of money for which “the county convention has made no appropriation.”

Thomas A. Tardif

Laconia