Penn Hills school board officials unanimously voted Wednesday night to approve a $3 million tax anticipation note, which will allow the district to borrow cash on a short-term basis to help pay operating expenses through July.
According to Business Director Richard Liberto, funds from the state have not been released and real-estate tax collections don't usually begin to come in until mid-August, leaving the district short on cash.
Mr. Liberto said the tax anticipation note has a 60-day term at less than 1 percent interest that will be paid back as soon as tax revenue begins to come in. If the school district were to take the full 60 days to repay the loan, the interest cost would be $5,000. The note will be borrowed from PNC Bank.
Tim Means, freelance writer: firstname.lastname@example.org First Published July 10, 2014 12:00 AM