Vermont State Treasurer Beth Pearce, along with the General Assembly, Vermont League of Cities and Towns, and the Vermont Bankers Association, introduced Tuesday the Municipal Emergency Statewide Education Property Tax Borrowing Program. Under the said service, municipalities can now get financial assistance as property tax payments lag during the pandemic.
“We work to foster strong partnerships between the State, the Vermont League of Cities and Towns, and our local banks so that we are prepared to act in times of need”, said State Treasurer Beth Pearce in a statement.
“The rapid launch of the Municipal Emergency Statewide Education Property Tax Borrowing Program will help municipalities reduce borrowing expenses as they manage COVID-19 disruptions, like potential education property tax deferrals or delays in revenues.”
In a press release, the Office of the State Treasurer explained that the program will cover the interest incurred for short-term borrowings made by municipalities to manage their cash flows in light of the statewide education property tax deferrals and delays caused by the COVID-19 pandemic.
Under the said program, eligible “short term borrowing costs” will not include principal payments, fees, and other interest on borrowings that are not directly related to COVID-19.
“The banking industry appreciates the legislature’s efforts to pass this very important bill to assist municipalities during these challenging times,” commented Chris D’Elia, Executive Director of the Vermont Bankers Association. “Like so many others impacted by COVID-19, municipalities have their own set of challenges to work through. We stand ready to work with Treasurer Pearce and local governments to successfully implement the program as contemplated in H.951.”
Local governments were advised to visit the website of the Vermont Office of the State Treasurer to know more about the lending program.