Commissioners award $1 million tax anticipation note to Northwest Savings Bank after rate comparison

Cameron County commissioners voted to award a $1,000,000 tax anticipation note to Northwest Savings Bank after reviewing competing proposals and the county treasurer’s cost projections. Chair (S1) presented two bids: Northwest’s proposal carried a 4.66% annual interest rate with a $1,000 origination fee and a maturity date of June 30, 2026; Citizens & Northern offered a fixed 5.25% rate maturing Dec. 31, 2026, with no origination fee.

The choice reflected an analysis of expected usage and total cost. Chair (S1) told the board that while Northwest’s bid includes a small origination fee, the math showed it would cost less over the anticipated borrowing period: “The interest rate was 4.66% annually with an origination commitment fee of $1,000,” the Chair said. Commissioners noted last year’s experience—when the county borrowed less than requested—so they reduced the requested amount and focused on the most economical short-term option.

Commissioner (S3) moved to accept Northwest’s offer and the board approved the motion. The Chair emphasized that the instrument is a line of credit, and the county need not draw the full amount: “We don't have to draw all of it. We can use it as needed,” the Chair said, adding that the solicitation had been sized based on worst-case budgeting.

The county finance staff said projections and origination costs were prepared for commissioners to compare total interest costs under likely scenarios. No individual roll-call tally was read into the record, but the motion carried by the board vote. The award sets the county’s borrowing terms should cash flow needs require drawing on the line during the first half of the coming year.