Chickasaw County board approves $600,000 loan note from Northeast Security Bank

The Chickasaw County Board of Supervisors on Oct. 28 approved Resolution 10-28-25-48 to accept a $600,000 general obligation capital loan note from Northeast Security Bank of Fredericksburg, Iowa. The board voted unanimously, 5-0, to approve the county’s acceptance of the bank proposal.

County financial advisor Travis Squires of Piper Sandlin and Company told the board the county received three proposals for the $600,000 note: Fidelity Bank at 4.00%, Huntington Bank at 3.98%, and Northeast Security Bank at 3.35%. "The Northeast Security Bank proposal…is one of the lowest rates we've seen on bank loan bids, really basically in line with what you would see in the conventional bond market with a bond rating," Squires said, and recommended accepting the 3.35% offer on a five-year structure. He also said the bank will permit prepayment beginning June 1, 2027, which aligns with the county's plan to use debt service funds to cover early payments if available.

Board members asked procedural and administrative questions about the submitted bid form and document dates. Squires acknowledged a typographical carryover on the official bid form that referenced a "city council" and said the form would be corrected to read "board" and included as an exhibit to the final resolution. He confirmed staff would update the date to Oct. 28 where needed.

Scott moved and Steve seconded the motion to approve Resolution 10-28-25-48 accepting the Northeast Security Bank proposal; roll call votes were recorded as Scott — aye; Steve — aye; Isaac — aye; Travis — aye; Jake — aye. The motion carried 5 to 0.

After the vote, Squires thanked the board and county accounting attorney and said he would reduce his fee to account for the extra meeting work required to finalize the transaction. Board members and Squires discussed logistics for signing paperwork; Squires said he could sign the documents by the afternoon of Oct. 28 or early the following morning and expected to return required paperwork by early next week.

An unidentified participant asked whether legal fees and building costs would be covered by the borrowing. County staff said legal fees are included but estimated building costs are not yet finalized; staff expects to have building cost estimates within about a month and said the board could modify project scope or seek secondary funding sources if needed.

The board adjourned at 1:10 p.m.