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Clinton County drainage board approves Farmers Bank loan for reconstruction project
Summary
The Clinton County Drainage Board voted to engage Farmers Bank for a reconstruction loan after hearing that Farmers Bank and Encompass Credit Union offered similar rates (~5.6%–6%). The board discussed a five-year loan with a balloon payment and approved the engagement by a 3-0 vote.
The Clinton County Drainage Board voted to proceed with Farmers Bank to finance an upcoming reconstruction project after staff reported competitive offers from two lenders.
Dan, the board surveyor, told members the county had sought options from Encompass Credit Union and Farmers Bank and that both had presented interest offers "around 5.6% to 6%." He said, "it would be my recommendation that we move forward with uh engaging the farmers bank on this loan," citing Farmers Bank's responsiveness.
Board members questioned term details. A board member described the structure as "a five-year loan with a balloon at the end for another five years," meaning the package is effectively structured as a 10-year financing with an early balloon payment. The board discussed how assessments would be set and confirmed the drainage board, comprised of commissioners, could handle the engagement without referring the matter to the full board of commissioners.
A motion "that we use the farmer's bank as presented by our surveyor" was made and seconded; the motion carried 3-0. No individual mover or second was recorded in the transcript.
The board president was designated to sign loan documents when prepared. Staff said they would contact bidders and return when documents were ready for execution.
The board’s approval moves the project forward administratively; specific loan documents, final interest rates, and repayment schedules were not provided at the meeting and remain to be finalized.
