Northumberland approves $5 million revenue anticipation note to cover summer cash shortfall

The Northumberland County Board of Supervisors voted to approve a $5,000,000 tax and revenue anticipation note with First Citizens Bank & Trust Co., a fixed-rate loan at 4.09 percent that county officials said is intended to cover cash-flow needs until property tax revenues are collected in the fall and to be repaid by Dec. 31, 2025. Chair Tadlock put the financing before the board as a supplement and amendment to a resolution the board adopted on June 25.

The county’s financial advisers participated online. Kyle Locks of Davenport said the 4.09 percent, fixed rate “is a very attractive interest rate,” and that the note would be paid back from expected tax collections in November or early December. Bond counsel Chris Culp and Austin Sachs also participated in the call.

The board discussed the $5 million amount and the county’s historical monthly expenditures. Marshall (county staff) said the county averages about $2 million in expenditures monthly and that the $5 million figure covers August, September and part of October until tax receipts return. “You borrow the money now and you’re getting it back to the last week of the calendar year and you pay it back with interest,” Locks said.

A motion to approve the resolution passed on a roll-call vote: Supervisors Williams, Long, Brandt, Fisher and Haney recorded aye votes and the chair announced the motion passed.

The board and its advisers noted this is a short-term cash-management tool the county has used before and that staff may return with ideas to avoid similar borrowing in future years. The loan documents and the resolution outline the lender (First Citizens Bank & Trust Co.), the principal ($5,000,000), the fixed interest rate (4.09%), and the repayment expectation by Dec. 31, 2025.

The board took no other financing actions at the meeting.