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Bedford County OKs up to $3 million tax‑and‑revenue anticipation note to cover 2026 cash‑flow gap
Summary
The Bedford County commissioners adopted a resolution authorizing a tax‑and‑revenue anticipation note of up to $3,000,000 to bridge cash‑flow shortfalls until 2026 tax revenues arrive; the county accepted a bid from First National Bank of Pennsylvania and established a sinking fund.
The Bedford County Board of Commissioners on Dec. 9 adopted a resolution authorizing the issuance of a Tax and Revenue Anticipation Note, Series of 2026, in a maximum principal amount not to exceed $3,000,000 to cover short‑term cash‑flow needs.
Commissioner Baughman said the move was necessary after a difficult fiscal year and a state budget impasse that delayed expected revenues. "It has been a difficult year financially for the county, especially with the budget impasse," he said.
The resolution accepts a private sale bid from First National Bank of Pennsylvania and directs the county to establish a sinking fund and designate the bank as paying agent and sinking fund depository. The note will mature no later than Dec. 31, 2026, and the commissioners emphasized it is intended as short‑term liquidity to be repaid within the calendar year.
Commissioner Stiles explained the practical need: "There are bills that cannot be held and must be paid." Commissioner Winck added a timing constraint: "It does have to be paid by the end of 2026 and cannot be used until the beginning of 2026."
The resolution includes typical financing provisions: registration without coupons, possible issuance in multiple certificates, authority to draw principal as needed before maturity, and language to comply with federal tax rules so the note is treated as a qualified tax‑exempt obligation. The board also authorized officers to file required certificates with the Pennsylvania Department of Community and Economic Development under the Local Government Unit Debt Act.
Why it matters: the note provides the county temporary access to cash to meet payroll and vendor obligations while awaiting receipts of anticipated tax and other revenues. County officials framed the action as a cash‑management tool rather than new ongoing debt.
The board approved the resolution by voice vote; the minutes record the motion and that it was approved. The note's principal ceiling is $3,000,000 and the county indicated proceeds will be returned to the sinking fund and repaid by Dec. 31, 2026.
