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Treasurer outlines possible emergency line of credit; council asks staff to gather bank proposals
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Summary
Treasurer Grama Polk briefed the council on seeking an emergency line of credit and the estimated application timeline and costs; the council asked the treasurer to provide financial documents to local banks so they can price terms without the county incurring application fees yet.
Treasurer Grama Polk presented background and options for an emergency line of credit during the Nov. 18 meeting, telling council members the county could expect a roughly two- to four-week process after application and an initial application cost ‘‘somewhere between $2,000 and $4,000’’ depending on the requested limit. Polk said the bank would charge interest only on any amount actually borrowed.
Council members discussed potential limits; Polk and others suggested a $2–$3 million line as a plausible size. Chief Deputy Auditor Tanya Dunsmore provided context on cash balances, saying that prior to an advance draw the county had targeted a $6 million cash balance but ‘‘after the advance draw’’ the available cash fell to about $3.9 million. Members raised concerns about timing, the county's near-term cash needs and alternatives such as tapping TIF district balances if required.
Council consensus was that staff should gather information and provide the banks with the county's budget and cash statements so banks can price options without submitting a paid application; members expressed reluctance to pay application fees preemptively. Polk agreed to send information to Star Financial and First Merchants (the two local banks discussed) for preliminary pricing and terms.
Next steps: Treasurer's office will supply the requested documents to local banks for pricing; staff will return to the council with quotes and terms to decide whether to proceed with a formal application.
