Waynesboro Borough Council OKs borrowing plan

January 06, 2011|By JENNIFER FITCH |

The Waynesboro Borough Council on Wednesday approved borrowing if needed until tax revenue starts arriving in late March or April.

The council approved a tax anticipation note, which is similar to a line of credit, with Susquehanna Bank at a rate of 1.87 percent. Borough Manager Lloyd Hamberger said the vote approved borrowing up to $300,000.

“I’ll only use it if we have to,” Hamberger said.

The council members asked Hamberger to notify them if drawing on the tax anticipation note. He said the additional funds would only be needed for an unexpected expense or emergency.

“The first three months are fallow until our tax revenue comes in,” Hamberger said.

That problem could be exasperated this year with the changeover to a countywide collection for earned income tax, Hamberger said. The new collection agency might be delayed in distributing funds as it settles into the work, he said.

Tax information mailed to residents is being distributed a few weeks later than usual, Councilman Ben Greenawalt said.
Sixty percent of property tax revenue arrives in April, too, Hamberger said.

“It’s something in the back pocket just in case,” Council President Craig Newcomer said of the tax anticipation note.

In other business, the council talked about an upcoming vote for the Franklin County Tax Collection Committee. The Jan. 27 decision concerns the committee’s voting structure.

The councilmen said they support one vote for each member agency, which is every municipality and school district in the county. The current structure is one vote for everyone other than Chambersburg Area School District, which has three votes, and the Borough of Chambersburg, which has two votes.

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