Franklin County BOC Approves Resolution to Secure Tax Anticpation Note

Franklin County is working with Northeast Georgia Bank to borrow money to keep the county government going until property tax revenue comes in.

At their regular meeting Monday evening, the Board of Commissioners heard from County Manager Beth Thomas on her efforts to secure a Tax Anticipation Note.

Thomas told the Board the County needs to borrow money because of the lack of reserve funds.

“Our 2016 budget was not constructed to generate any excess revenue,” she told the board. “So we knew our best hope going into it was to end the fiscal year the way we went into it, in all honesty, with no fund reserves. The strategy will continue to necessitate a funding mechanism for temporary cash management.”

The County is looking to borrow 3.9 million dollars at rate of 2.98%.

Thomas said that rate is higher because this year’s loan will be taxable.

“Unlike last year, this year’s note will be considered taxable. This is because of the overall plans we have to refinance the hospital and forward fund the SPLOST V for key projects,” Thomas explained.

Thomas said the tax anticipation note will be through Northeast Georgia Bank.

Before making the motion to approve the resolution, Commissioner Jeff Jacques noted the County must take out the loan.

“We don’t have a choice until we get our cash reserves,” Jacques said.

Thomas said those funds will not be borrowed until absolutely necessary. The note must be paid off by the end of the year.

After hearing from Thomas, the Board voted unanimously to pass the tax anticipation note resolution.