SHELTON — The Board of Aldermen voted to participate in a low-interest rate program for those residents wishing to delay paying their July tax bills.

Gov. Ned Lamont signed an executive order that requires all municipalities to choose one of two options for taxpayers — a deferment program or a low-interest rate program — for July tax collections on real estate, motor vehicles and personal property.

The aldermen, during a special virtual meeting Tuesday before Mayor Mark Lauretti’s 2020-21 budget presentation, voted unanimously that low interest was the safer choice.

Lauretti said deferment — which would extend the deadline from July 1 to Oct. 1 without any interest — is not an option because the city “needs cash flow to pay bills.”

The low interest rate program, according to the state’s Office of Policy and Management, provides a reduction in the interest rate for delinquent taxes from 1.5 percent per month to 0.25 percent per month.

Taxes due on July 1 would still have a normal grace period until Aug. 3 without interest. Taxes paid from Aug. 4 through Oct. 2 would be subject to the lower interest rate.

The other option is a deferment program, which would extend the deadline and “normal” grace period to pay taxes due July 1 to Oct. 1, without any interest.

brian.gioiele@hearstmediact.com