Commissioners award $1 million tax anticipation line to Northwest Savings Bank

Cameron County commissioners voted to award a $1 million tax anticipation line of credit to Northwest Savings Bank, accepting a proposal with a 4.66% annual interest rate and a $1,000 origination fee. Commissioners discussed two proposals — Northwest’s June 30, 2026 maturity with interest-only monthly payments and Citizens & Northern’s proposal with a December 31, 2026 maturity at a fixed 5.25% rate and no origination fee — before approving the Northwest offer.

The board’s staff said the county typically uses far less than the full line; last year the county drew roughly $400,000 even though a larger amount was available. Commissioners and staff compared the projected interest expense and origination cost and concluded the Northwest package would be less expensive if the county needed to use typical amounts. “It’s just a line of credit. We don’t have to draw all of it,” the chair said during debate.

A commissioner moved and seconded the award to Northwest Savings Bank; the motion carried on a voice vote. County staff also presented cash-flow projections showing interest costs under each proposal and noted the worst-case budgeting assumptions were conservative; last year’s interest expense for similar borrowing was stated to be less than $10,000.

Next steps: county staff will finalize the loan documents and complete required administrative steps to put the credit line in place. The board did not record a roll-call vote tally in the transcript; the audio record shows the motion was approved by general assent.