Lawrence commissioners award contract for tax-anticipation note

December 15, 2011 at 12:00a.m.

By Mary grzebieniak

NEW CASTLE, Pa.

Lawrence County Commissioners awarded the contract Tuesday for a $3.3 million tax anticipation note to First Merit which was the low bidder, offering a rate of one percent with no pre-payment penalties or fees.

The commissioners intend to borrow the money to pay 2012 county expenses until tax receipts begin coming in this spring.

Other proposals included: ESB Bank, 1.75 percent interest; First Commonwealth, 1.9 percent; and PNC Bank, 1.73 percent.

Also Tuesday, commissioners signed a memorandum of understanding with PIMCC, the company that provides medical coverage for prisoners in the Lawrence County Jail.

The agreement was necessary to incorporate a change in state law which requires Medicare to pay for medical care for hospitalized county jail prisoners. Previously, their care was the county’s responsibility. Commissioner Steve Craig said the change could result in a substantial savings for the county.