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Richmond County OKs 12-month $2.25M revenue anticipation note with First Citizens
Summary
The Board approved a 12-month revenue anticipation note (RAN) of up to $2.25 million with First Citizens Bank at a 3.82% interest rate to cover cash-flow timing and reimbursable project expenses; the resolution passed on a roll-call vote.
The Richmond County Board of Supervisors voted to adopt a resolution authorizing a 12-month revenue anticipation note of up to $2,250,000 with First Citizens Bank.
Sam Stewart of Davenport Company, the county's financial adviser, presented the results of an RFP process that sought proposals from four banks and compared 6‑ and 12‑month options and two principal sizes. "They provide the county interest rate of 3.82%," Stewart told the board, and the 12‑month, $2.25 million option was recommended because it offered the lowest rate, a fixed rate through maturity and flexible prepayment provisions.
Stewart illustrated cost differences: roughly $38,000–$43,000 in interest for a 6‑month note and about $76,000–$85,000 for a 12‑month note depending on size. County staff emphasized the extra $250,000 is a contingency for timing risks such as reimbursement delays on block‑grant projects and possible billing delays while new software is implemented. Staff said unused proceeds could be prepaid to reduce interest expense.
Board members asked whether the larger amount was necessary; staff reiterated the need for a cushion to manage reimbursements and cash flow. After discussion the board adopted the resolution authorizing First Citizens Bank for the 12‑month note; the chair called for a roll-call vote and the motion passed with the board recording ayes.
The resolution directs county staff to work with bond counsel, Davenport, and First Citizens on closing timelines and documentation, with closing targeted for early July.
