Clearfield County Looks to Take Out $3 Million Tax Anticipation Note

Mark B. McCracken (Provided photo)

CLEARFIELD – The Clearfield County Commissioners are looking to take out a tax anticipation note in the event cash flows are lean in early 2020.

On Tuesday, Commissioner Mark B. McCracken, temporary board chairman, reported the county solicited proposals for a $3 million TAN several weeks ago.

He said four local financial institutions submitted proposals, including CNB Bank, First Commonwealth Bank, Northwest Savings Bank and CBT Bank, a Division of Riverview Bank.

A tax anticipation note is a short-term note for a state or local government to issue with the expectations of repayment with imminent tax receipts.

A TAN provides state and local governments with the ability to stabilize cash flows and to proceed with bills and projects immediately rather than waiting to have cash in-hand.

“It’s our hope we won’t need it,” Commissioner John A. Sobel said, “but we do want to have it as a backup just in case things get extremely lean in the early months before tax monies come in.”

McCracken reminded that once its available, the note will allow the commissioners to take out any amount, including nothing at all.

The commissioners authorized Solicitor Heather Bozovich to initiate the negotiation process with the financial institutions, and a proposal will be awarded at a future meeting.

In other business, the commissioners:

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