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Commission approves $7M tax‑anticipation line with Magnolia State Bank at 4.49%
Summary
Baldwin County authorized a 2025 tax anticipation line of credit with Magnolia State Bank to cover operating expenses until property tax collections, using the bank's 4.49% quote; estimated interest expense was stated at about $225,000.
Baldwin County commissioners voted unanimously to authorize a temporary line of credit with Magnolia State Bank to cover operating expenses until property-tax revenues are collected later in the year.
Staff told the board the county needs approximately $7,000,000 during the fiscal year to bridge cash-flow timing differences and that the county solicited interest quotes from local banks. Magnolia State Bank provided the lowest quoted interest rate at 4.49 percent. Staff estimated the interest expense for the note at roughly $225,000 depending on actual draws.
The county finance director explained that tax receipts are concentrated late in the year and that the county operates on monthly expenditures; the line is intended to be a short-term borrowing instrument and set up as a line of credit so the county only borrows what it needs, which would reduce interest costs if not all approved funds are used.
A motion to approve the resolution authorizing the note carried unanimously. Staff said the facility is structured as a construction-style line of credit and that any undrawn portion would save interest expense.
