The county treasurer, Brad, briefed the council on bank conversations about a short-term revolving line of credit to cover midyear cash-flow gaps. He said two local banks — First Merchants and Star Bank — were contacted, and initial terms discussed included a setup fee, interest only when drawn, and rough rate estimates in the mid-single digits (he cited about 6%). Brad said the bank relationship and the county’s deposit balances could affect fees and rates, and that he would request formal offers and confirm multi-year availability to avoid annual setups.

Commissioners and council members framed the credit as a gap-bridging tool rather than long-term borrowing. One member identified the county’s target operating balance as about $6 million and noted the county had dipped below that level in May of the prior year, reaching near $2 million at the lowest point in recent cycles. Brad said an operating line sized to the operating balance (he used $6–10 million as illustrative capacity) would be available but he did not anticipate borrowing the maximum.

Liability insurance timing: officials discussed moving the county’s liability (and health-insurance) premium payment schedule so large premiums fall after the county’s first tax draw of the year, reducing pressure on the operating balance. Brad said the liability contract currently runs March–March and proposed aligning it with the fiscal year to push payments about three months later; commissioners supported pursuing negotiation with vendors.

Process and approvals: council members asked what formal steps are required to put a line of credit in place. Brad said banks will request financials and may require legal formalities similar to tax-anticipation warrants used in school finance; he said borrowing approvals would likely require both the county commissioners and the council to authorize any borrowing. He will seek written proposals from banks and confirm whether bond counsel opinions or other formalities would be required.

Next steps: Brad will collect formal proposals from First Merchants and Star Bank and report back. Commissioners directed staff to explore liability-payment timing with insurance vendors and to look at operating-balance policy options that could safely lower the cash cushion while preserving the county’s ability to meet payroll and obligations.