News

January 6, 2009

W-B Twp.’s tax anticipation note interest rate falls

Loan goes from 3.29 to 3.15 percent to reflect the Fed’s lower rates.

IAN CAMPBELL Times Leader Correspondent

WILKES-BARRE TWP. – Council on Monday established a $150,000 tax anticipation note at a rate that indicated the township was in fairly good financial shape.

Council had been offered a rate of 3.29 percent when the loan was originally proposed, but two days later the Federal Reserve had lowered interest rates, and business administrator Michael Revitt approached the bank to see if that move would be reflected in the loan to the township.

The new rate of 3.15 per cent, with no origination costs, was the result, Revitt noted.

The township customarily takes out a tax anticipation note each year, and generally pays it off before the Dec. 31 deadline. The loan covers costs between the beginning of the year and the months when tax revenues start to come in, which is usually March or April.

Council did not specify which bank had been selected to supply the loan, or how many banks had made loan proposals

Finances will not be impacted by the loss of security work at the arena, Revitt noted, but the township’s police vehicle fleet of 24 vehicles will likely drop by five or six by the end of February to reflect the reduced need.

The township added one used Ford Taurus during December at a cost of $4,970 to replace another older vehicle. Revitt has noted that used vehicles are much cheaper to purchase and operate for tasks like traffic control at the arena and substation duty at the Wyoming Valley Mall and Wegmans.

The township will continue to provide traffic control at the arena, Revitt said.

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