The Peach County Board of Education unanimously approved a $3 million tax anticipation note at its meeting Tuesday to account for expenses that will eventually be covered by federal and local funds expected later in the fall.
The tax anticipation note (TAN) is a loan to a government entity to temporarily cover expenses from revenue it expects to receive later.
Peach County must pay it off by the end of the year.
First State Bank in Stockbridge was the lowest bidder among three banks in Fort Valley and Stockbridge and also loaned the district funds for a TAN last year.
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The bank will loan the district the money at a 2.27 percent interest rate, almost a full percentage point lower than the interest on last year’s TAN, according to Susan Perry, the district’s director of finance.