Northumberland moves to replace $5 million short-term loan with two long-term financings; Webster Bank recommended
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Summary
County financial adviser Davenport recommended two long-term financings to take out a $5,000,000 revenue anticipation note and reimburse prior capital outlays; board voted to move forward with the plan and authorizes staff to finalize terms and conduit arrangements.
Kyle Laux, the county’s financial adviser with Davenport, told the Northumberland County Board of Supervisors that the county had issued a $5,000,000 revenue anticipation note (RAN) to cover short-term cash needs and that the note comes due in December. "That $5,000,000 is due at the December," Laux said, and Davenport presented a plan to replace the short-term borrowing with two long-term financings: a tax-exempt "2025a" issuance to fund new capital projects and a taxable "2025b" issuance, roughly $2,400,000, to reimburse capital projects the county paid for over the past several years.
Davenport ran a competitive process for long-term bids and recommended Webster Bank as the low-cost and more flexible bidder. "Webster Bank is lower by about $100,000 in the aggregate over that lifetime," Laux said, adding that Webster’s prepayment features give the county flexibility as it rebuilds fund balance. Davenport cautioned that Webster’s proposal is subject to final credit approval and that legal and bond‑counsel steps remain.
County staff said the structure proposed is a lease‑revenue bond using a conduit issuer because Northumberland does not have its own EDA; Davenport and staff said Westmoreland County’s EDA has indicated willingness to serve in that conduit role. "That doesn't mean this is Westmoreland's debt. This is Northumberland County's project," Laux said.
After questions from board members about costs and timing, a supervisor moved to "move forward and look at that proposal," the motion was seconded and approved by voice vote. The presentation noted a targeted closing in mid‑December so bond proceeds would be available before the RAN payoff date.
Next steps identified by Davenport include completing credit approval, working with bond counsel, finalizing the lease‑revenue bond documentation and executing the conduit arrangement. County leaders said they will return final documents to the board for formal adoption if substantive terms change.
