FY27 TAN Financing

The City of Ellsworth, Maine, is soliciting proposals under solicitation number 2026-GEN-007 for the purchase of a 3,000,000 dollar Tax Anticipation Note (TAN) to support short-term working capital for the 2026-2027 fiscal year. This tax-exempt borrowing instrument is authorized under Maine Revised Statutes Title 30-A, Section 5771, and the City Charter, with a scheduled maturity date of June 30, 2027. The note is designed to be repaid within the same fiscal year of issuance and may be prepaid in whole or in part at any time without penalty. Interested bidders must submit proposals for the full 3,000,000 dollar principal amount, as partial bids are not permitted. Submissions must include the proposed interest rate, total interest cost, and a bid validity period remaining open until June 17, 2026. Proposals are due by June 2, 2026, at 1:00 PM and can be submitted via the OpenGov portal, email to Ashlie Brown, Deputy Finance Director, or by mail to City Hall Plaza in Ellsworth, Maine. The award process focuses on monetary terms, specifically the interest rate and total interest cost. Compliance with Internal Revenue Code Sections 141, 148, and 265(b) is required to maintain the note's tax-exempt status, and a legal opinion from Pierce Atwood LLP must be provided at closing.