At its Wednesday, Nov. 9, meeting, the City Council will hold a first reading and schedule a public hearing for Nov. 30 on a resolution that would authorize the issuance of a tax anticipation note (TAN). The potential need for a TAN is due to a delay in the School Department's submittal of required documents to the state. The city cannot produce and issue tax bills for the current tax year until the Department of Revenue Administration (DRA) certifies the city’s tax rate.
City Manager J. Michael Joyal, Jr., notified the Council that while he seeks authorization for the TAN, the city would only proceed if needed before tax receipts begin arriving.
“Typically, we strive to have a certified tax rate from DRA and have tax bills mailed by midNovember with a due date for the first half tax payment no later than mid-December,” Joyal wrote to the Council. “The timing for the receipt of the certified tax rate and our issuance of tax bills is critical to ensure we have sufficient cash receipts on hand to make a debt service payment on Dec. 15 and the county tax bill, due in full, on Dec. 16 of each year.”
Tax anticipation notes are authorized by state law; a TAN requires a public hearing and a twothirds affirmative vote of the City Council to authorize. Joyal said the delay in obtaining a certified the tax rate is due to the delay in finalizing School Department forms for estimated revenue and prior-year financial information to the state, which the DRA requires to proceed with the issuance a certified tax rate.
“There have been ongoing staffing challenges being addressed within the School business office, and there remains a number of accounting transactions to be reviewed for the School Department to close out the FY2022 budget year,” Joyal wrote. “The School Department is aware of the impact this is having on tax-rate setting and has been working to expedite the completion of their year-end accounting work.”
Also on the Nov. 9 agenda are three public hearings and subsequent resolutions for the Council to accept and expend grant funds for the Dover Police Department.One is for a $250,000 Department of Justice Community Oriented Policing Services (COPS) grant to fund two police officers to enhance the Police Department’s ability to respond to incidents involving mental illness and substance misuse.
Another is for a $1,875,000 Partnership for Success Grant from the U.S. Substance Abuse and Mental Health Services Administration. The grant would be used to “build capacity to launch effective, data-driven collaborative community-based strategies to prevent the onset and reduce the progression of substance misuse and its collateral problems while promoting mental health and wellbeing,” the resolution background materials state.
The last is a $200,000 grant from the Sober Truth on Preventing Underage Drinking Act (STOP Act), also funded by the U.S. Substance Abuse and Mental Health Services Administration. “The STOP Act grant is designed to prevent and reduce alcohol use among youth and young adults ages 12-20 years old and reduce negative consequences associated with underage drinking,” the resolution states.
The meeting begins at 7 p.m. in Council Chambers at City Hall. Click here for the complete agenda.
Original source can be found here.
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