Action 5.
Special Board of Supervisors Meeting - 10:00 a.m.
Board of Supervisors
- Meeting Date:
- 11/04/2025
- Title:
- Adopt Resolution approving the form and authorizing the execution and delivery of a Line of Credit agreement for Cochise County and Wells Fargo
- Submitted By:
- Lara Loewenheim, Board of Supervisors
- Department:
- Board of Supervisors
Presentation:
No A/V Presentation
Recommendation:
Approve
Document Signatures:
BOS Signature Required
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
2
NAME
of PRESENTER:
of PRESENTER:
Catherine L. Traywick
TITLE
of PRESENTER:
of PRESENTER:
County Treasurer
Mandated Function?:
Federal or State Mandate
Source of Mandate
or Basis for Support?:
or Basis for Support?:
11-604.01
Docket Number (If applicable):
Information
Agenda Item Text:
Adopt Resolution 25-32 Authorizing the Execution and Delivery of a Business Loan Agreement Between the Cochise County Treasurer and Wells Fargo Bank, National Association, Providing for Separate Lines of Credit for Each Political Subdivision for Which the County Treasurer Acts as Treasurer, as outlined in Schedule I.
Background:
Pursuant to Arizona Revised Statutes §11-604.01, a County Board of Supervisors may enter into a line of credit agreement with a financial institution authorized to do business in Arizona for each political subdivision of the state for which the County Treasurer serves as treasurer. This provision allows qualifying school districts and special districts to maintain cash flow during periods of reduced revenue receipts by accessing short-term credit facilities.
Cochise County issued a solicitation for banking services covering the period from June 7, 2024 through June 30, 2027, with optional extensions as permitted by A.R.S. §35-325. Included in the solicitation was a request for proposals to provide lines of credit to political subdivisions. After a competitive bidding process, Wells Fargo Bank, National Association was selected as both the servicing bank for Cochise County and the provider of these credit facilities.
The attached Business Loan Agreement (Cochise County Districts Revolving Line of Credit) and related Promissory Note set forth the terms of the arrangement. The agreement provides separate revolving lines of credit for the following participating districts, up to a combined commitment cap of $1,500,000:
District Commitment Amount
Sierra Vista Unified School District$1,000,000
Whetstone Fire District$150,000
Sunsites-Pearce Fire District$100,000
Palominas Fire District$250,000
Total Commitment Cap$1,500,000
Under the agreement, the County Treasurer acts as agent on behalf of each district for all purposes of the line of credit, including draw requests, repayments, and administrative actions. The interest rate on advances will be variable, equal to Wells Fargo’s publicly announced prime rate, subject to a cap of 110% of the weighted average prime rate among Arizona’s three largest financial institutions. Each district is responsible solely for repayment of its respective advances, and neither the County nor the Treasurer bears any financial liability for the obligations of participating districts.
Approval of this resolution authorizes the Board Chairman and the County Treasurer to execute and deliver the finalized agreement substantially in the form attached, subject to approval by the County Attorney.
Cochise County issued a solicitation for banking services covering the period from June 7, 2024 through June 30, 2027, with optional extensions as permitted by A.R.S. §35-325. Included in the solicitation was a request for proposals to provide lines of credit to political subdivisions. After a competitive bidding process, Wells Fargo Bank, National Association was selected as both the servicing bank for Cochise County and the provider of these credit facilities.
The attached Business Loan Agreement (Cochise County Districts Revolving Line of Credit) and related Promissory Note set forth the terms of the arrangement. The agreement provides separate revolving lines of credit for the following participating districts, up to a combined commitment cap of $1,500,000:
District Commitment Amount
Sierra Vista Unified School District$1,000,000
Whetstone Fire District$150,000
Sunsites-Pearce Fire District$100,000
Palominas Fire District$250,000
Total Commitment Cap$1,500,000
Under the agreement, the County Treasurer acts as agent on behalf of each district for all purposes of the line of credit, including draw requests, repayments, and administrative actions. The interest rate on advances will be variable, equal to Wells Fargo’s publicly announced prime rate, subject to a cap of 110% of the weighted average prime rate among Arizona’s three largest financial institutions. Each district is responsible solely for repayment of its respective advances, and neither the County nor the Treasurer bears any financial liability for the obligations of participating districts.
Approval of this resolution authorizes the Board Chairman and the County Treasurer to execute and deliver the finalized agreement substantially in the form attached, subject to approval by the County Attorney.
Department's Next Steps (if approved):
Once approved and signed, send copy to Treasurer's office. Treasurer will mail copy to Wells Fargo.
Impact of NOT Approving/Alternatives:
The County Treasurer will be unable to establish lines of credit for qualifying school and fire districts under A.R.S. §11-604.01.
To BOS Staff: Document Disposition/Follow-Up:
Once approved and signed, send copy to Treasurer's office. Treasurer will mail copy to Wells Fargo.
Fiscal Impact
Attachments
- Business Loan Agreement (Cochise County Political Subdivisions) - 2025
- Promissory Note (Cochise County Political Subdivisions) - 2025
- Resolution 25-32