by Jackie Nunnery
HEATHSVILLE—In addition to the recently borrowed $5 million revenue anticipation note (RAN), the Northumberland board of supervisors is considering an additional $3 million loan to finance a number of capital projects instead of using cash, allowing the county to build up its cash reserves.
The board on Thursday, September 11, voted 5-0 to authorize Davenport & Company to send out a request for proposals (RFP) for the financing. The move does not commit the county to any additional debt, but allows the county to evaluate the lender terms.
Kyle Laux, senior vice president with Davenport & Co., recommended borrowing “to take those dollars and put them right back in the general fund. It starts to build back without having to go and do anything sort of overly draconian with this year’s budget.”
Regarding the cost of borrowing, Laux said, “Cash in the bank earns interest too. If we can earn right now, which you can in state programs, the county can invest at about 4.5%. We’ve also got the ability to go borrow on a tax exempt basis at about the same….
