On March 21, 2011, the Saco City Council approved the city staff recommendation to move the first and second half property tax payment due dates for the coming Fiscal Year to August 2011 (from September 2011) and February 2012 (from March 2012). The new due dates are intended to improve cash flow for operating expenses and should minimize borrowing that must be done throughout the year.

In January, 2010, the Council asked staff to research several possible billing options based on three criteria: cost effectiveness, customer convenience, and efficiency. The recent recommendation resulted from this research and three presentations to the council of the findings over the course of the year.

Prioritizing among these three criteria, cost effectiveness became a key factor in the discussion when various cash flow scenarios were reviewed and it became clear that certain expenses must be met early in the year. In particular, the new Regional School Unit #23 July and August bills come due well before tax collections traditionally can begin in September. As well, county taxes now are due in September. Finally, many capital projects are done in the spring and summer, which draws on available cash to pay vendors timely in the same time frame.

Maintaining the current due dates of September and March would have forced the city to borrow twice in the coming year (such loans are then paid off once taxes are collected). Other scenarios analyzed projected similar borrowing needs. However, the scenario of two installments with the August and February due dates is projected to minimize the city's borrowing.

The impact on tax payers of moving the due dates for the coming year cannot be underestimated, so the city actively sought feedback on how best to implement this move. Getting the new date information out to all concerned is critical, so all tax payers can plan accordingly. Customer Service representatives reviewed the change with tax payers coming to City Hall this March, and reminder bills went out in early April for past due taxes with this date change information highlighted. Other efforts included newsletter articles, website postings, Facebook reminders, and a press release to local businesses and the newspapers. As well, mortgage companies have been contacted to determine how best to minimize the impact for tax payers with escrow accounts for their real estate taxes.

Although this change may be more of a challenge for some individual tax payers, it is in the best interest of the community as a whole. Finally, this change, once it is made, should only cause inconvenience in the first year, if at all. Thereafter, it will be the new norm until future study based on new circumstances and criteria determine another option is in the community's best interest.

If you have any questions about this or any other service we offer, please call Stephanie at 282-1032.