A new line of credit is in place for Elbert County after last night’s monthly commission meeting.
The commission received three bids back on a three million dollar line of credit for the county’s 2013 calendar year tax anticipation note.
Bids were received from Northeast Georgia Bank, Pinnacle Bank, and Regions Bank.
According to Phil Pitts, the county’s finance manager, Elberton Federal Savings and Loan was not allowed to submit a bid, due to rules in place when lines of credit are this large.
The recommendation from Pitts was that the county go with Pinnacle Bank’s bid of a 1.99% fixed rate of interest on the three million dollars.
He says that Pinnacle’s sweep account feature also factored into his recommendation.
“Pinnacle has a sweep account, so every evening they look at our balance, and if it’s overdrawn they switch line of credit over to make it $20,000. If we go over $20,000; they sweep that amount back over to the line of credit, which will reduce the line of credit”, said Pitts. “We get the absolute lowest interest charge in doing it that way.”
The board of commissioners accepted this recommendation with a unanimous 5-0 vote.
Northeast Georgia Bank was used for 2012’s tax anticipation note.