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Bedford County approves up to $3 million tax-revenue anticipation note to bridge state funding gap
Summary
Commissioners adopted a resolution authorizing a tax-revenue anticipation note with a maximum principal of $3 million to cover early-2026 cash flow shortfalls caused by a state budget impasse; officials said the county has received only about one-third of expected Commonwealth funding for 2025.
The Bedford County Commission voted Dec. 9 to authorize a tax-revenue anticipation note with a maximum principal amount of $3,000,000 to address a temporary cash-flow shortfall caused by the state budget impasse.
"This has been a difficult year for us financially as a county, with the state budget impasse for 5 months," Speaker 3 said during discussion. "In the past few years, we have not needed to take out a tax anticipation note, but that's the purpose of this, to get us through the beginning of the year before tax revenue for 2026 begins opening up, so that we can pay the bills and keep ourselves staffed."
Speaker 1 said the county had received only about one-third of the roughly $3 million it expected from the Commonwealth for 2025, contributing to the need for short-term borrowing. Officials emphasized that the note need not be drawn in full and can be repaid by year-end if revenues materialize.
The resolution authorizes issuance of the note and sets a maximum principal amount; the board approved the measure by voice vote. Commissioners said the borrowed funds would be used only as needed to avoid drastic spending cuts, employee-benefit reductions or layoffs while awaiting state payments.
No specific repayment schedule beyond year-end repayment was detailed at the meeting. Officials described the measure as a temporary cash-management tool tied to the timing of state disbursements rather than a permanent increase in indebtedness.
