Penn Hills school board votes to borrow $3M through tax anticipation note
With no state money or real-estate tax-collection revenue on hand, Penn Hills school board officials voted 5-0 on Wednesday night on a tax anticipation note, which will allow the district to borrow $3 million cash on a short-term, extremely low-interest basis to help get through July.
“We are just trying to anticipate having cash flow because the state has not released any money to the district, and real-estate collections don't usually start coming in until mid-August,” Business Director Richard Liberto wrote in an email.
“Usually in July we receive, from the state, about $1.2 million and another $6 million,” he said.
It will help the district “get through the next month or so until we get some revenue in, and then we just give it right back to PNC,” Liberto said. The total interest charge, if the district took the full 60 months to pay it back, would be $5,000, he added.
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Patrick Varine is a staff writer for Trib Total Media. He can be reached at 412-320-7845 or email@example.com.