Quorum Court authorizes loan agreements to cover balloon payments on county graders

The Quorum Court authorized Resolution R202403, which authorizes the county judge to enter loan agreements with First Service Bank to finance balloon payments on John Deere graders that are scheduled to come due between now and January 2025.

The resolution text, read by title, said the county purchased road graders through John Deere with 60-month terms and balloon payments due at the end of each term; it states the county budget already includes the loan payments for 2024. County officials said a recent near-$500,000 disaster affected the county's ability to pay these balloon payments from existing cash flow, prompting the need for financing.

During discussion, a court member asked whether First Service Bank would provide a better rate than John Deere financing. The county judge replied that First Service offered municipal rates not available to the general public and that those rates were substantially lower; the judge indicated a difference in the neighborhood of about 5 percent when comparing the options, and said the county conducted a bid process inviting banks with branches in the county to compete.

The resolution was moved, seconded and approved (voice vote recorded as 'aye'). The county judge said the loan payments have been included in the 2024 budget and the bank selection followed a bid process among eligible banks with branches in the county.

Next steps: the county judge is authorized to finalize loan agreements with First Service Bank to finance the specified balloon payments; the finance terms will be reported to the court as arranged.