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flag Washington County avoids default by prepaying $4.3M in tax notes amid $8M debt crisis.

flag Washington County faces a severe cash shortfall in 2026, with less than three months of operating funds, prompting towns to prepay $4.3 million in tax anticipation notes (TANs) to avoid default on its $8 million debt. flag While 22 towns have committed, seven—including the Passamaquoddy Nation—have not, adding $2.9 million in interest-bearing debt. flag Thirteen towns remain undecided. flag The county’s financial strain stems from years of mismanagement and delayed audits, compounded by a rejected $11 million borrowing referendum. flag With $3.7 million in cash and $1.25 million in monthly expenses, officials plan to issue a new TAN by March. flag A legal memo confirms no December 31 repayment deadline and no voter approval needed, allowing commissioners to extend the TAN with bank consent.

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