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Board opts for 12‑month revenue anticipation note; MNT Bank recommended at 4.31%
Summary
After reviewing four proposals, county financial advisors recommended and the board approved a 12‑month, tax‑exempt revenue anticipation note with MNT Bank at a fixed 4.31% interest rate; staff were authorized to execute a financing resolution and work toward a July 1 closing.
The Richmond County Board of Supervisors on June 11 authorized staff to proceed with a 12‑month revenue anticipation note (RAN) and accepted financial advisors’ recommendation to use MNT Bank’s proposal.
Sam Stewart of Davenport presented results of a competitive RFP process for an up to $2 million tax‑exempt, bank‑qualified general obligation RAN. ‘‘MNT had the lowest interest rate to the county of 4.31% . . . and they offered flexible prepayment provisions allowing you to prepay in whole or in part at any time without penalty,’’ Stewart said. He estimated the county’s interest cost at roughly $86,000 for 12 months, noting that proceeds can earn interim interest until deployed.
County staff told the board the note would be secured by the county’s general tax pledge and other revenues and that the 12‑month term provides flexibility; historically the county has used 12‑month options but requested both six‑ and 12‑month bids for comparison. The board moved to accept the MNT Bank proposal, authorized the appropriate financing resolution and instructed staff and bond counsel to work toward closing by July 1.
What the board approved and next steps: the board authorized the resolution that begins the formal issuance process, directed county staff to coordinate closing logistics with bond counsel and the selected bank, and asked staff to provide paperwork for a roll‑call resolution. The motion carried at the meeting; the minutes record the board moved forward with the 12‑month MNT Bank option and instructed staff to schedule the closing.
Why it matters: the RAN is a short‑term cash‑flow instrument intended to smooth timing mismatches between receipts and expenditures; choosing a lower fixed rate with prepayment flexibility reduces projected borrowing cost and gives the county the option to retire the note early if cash flow allows.
