Public Hearing: YES ☐ NO ☒ Department: Finance
SUBJECT:
Title
Commission District(s): All Commission Districts
A resolution authorizing the Issuance and Sale of Tax Anticipation Notes (TAN) for 2023, due December 19, 2023 in the aggregate principal amount of $78,000,000, to Truist Bank, for the purposes of obtaining a temporary loan to pay current expenses during the 2023 calendar year. PFM Financial Advisors LLC, the County’s Municipal Advisor, will conduct a competitive process.
Body
Body
Information Contact: Dianne McNabb, CFO and Bob Atkins, Deputy Director of Finance/Treasurer
Phone Number: 404-371-2174 and 678-910-5638
PURPOSE:
To consider adopting a resolution authorizing the Issuance and Sale of Tax Anticipation Notes, due December 19, 2023 in the aggregate principal amount of $78,000,000, to Truist Bank, for the purposes of obtaining a temporary loan to pay current expenses during the 2023 calendar year.
NEED/IMPACT:
The County funds a significant amount the annual budget from property taxes collected primarily in September, October, and November, while the expenditures of those revenues are generally incurred ratably throughout the year. As a result, the issuance of a temporary loan or Tax Anticipation Note is necessary in order to bridge the cash flow until property taxes are received.
FISCAL IMPACT:
Net Interest Cost (NIC) of 4.31% ($1,718,253) plus an estimated Cost of Issuance of $50,000.
RECOMMENDATION:
Recommended Action
Adopt the attached resolution and authorize the Chief Executive Officer and the Chief Financial Officer to execute all necessary documents in connection with this matter.