Department
Finance
Requested Action (Identify appropriate Action or Motion, purpose, cost, timeframe, etc.)
title
Request approval of a Resolution authorizing the release of a Request for Proposal to financial institutions and authorizing the County Manager in conjunction with the Chief Financial Officer and County Attorney to accept the lowest most responsive bid for a short-term loan or line of credit for the County’s 2022 General Fund Tax Anticipation Notes (“TAN”). (APPROVED)
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Requirement for Board Action (Cite specific Board policy, statute or code requirement)
Department of Finance seeks approval of a Resolution releasing a Request for Proposal for a Tax Anticipation Note or other alternative financing arrangement including a privately placed loan, draw down or line of credit arrangement in an amount up to $175,000,000 and acceptance of the lowest most responsive bidder.
Strategic Priority Area related to this item (If yes, note strategic priority area below)
Open and Responsible Government
Commission Districts Affected
All Districts ☒
District 1 ☐
District 2 ☐
District 3 ☐
District 4 ☐
District 5 ☐
District 6 ☐
Is this a purchasing item?
No
Summary & Background (First sentence includes Agency recommendation. Provide an executive summary of the action that gives an overview of the relevant details for the item.)
Scope of Work: The Temporary Loans provisions of the Georgia Constitution (Article IX, Section V, Paragraph V of the Georgia Constitution of 1983 and O.C.G.A. § 36-80-2), permit-the use of a line of credit/loan structure which conforms with all of the requirements of the Georgia Constitution’s temporary loan provisions. The Georgia Constitution provides that a city or county may obtain ‘temporary loans in each year to pay expenses,’ so long as: (1) The total amount of all such temporary loans does not exceed 75% of the gross amount of taxes collected in the preceding year; (2) The temporary loan is payable on or before December 31 of the year in which it is made; (3) The municipality has no other temporary loans from previous years that remain unpaid; and (4) The temporary loan is for no more than the total anticipated revenue for the municipality for the year in which it is made. A TAN is a form of temporary borrowing or loan which the County has obtained in recent years. It is not, however, the only form which such borrowings may take. A line of credit or privately placed loan from a bank or other financial institution would also qualify as “other evidence of indebtedness” under the Temporary Borrowing Clause. To that end, the Department of Finance seeks approval by the BOC to release a Request for Proposal for a 2022 TAN up to $175,000,000 and other alternative solutions including a draw down feature or line of credit arrangement which would allow the County to make draws on a periodic basis and acceptance of the lowest most responsive bidder. In the aggregate, the draw downs on the line of credit, should it be selected, will not exceed the County’s maximum borrowing limit and the temporary loan limits in the Georgia Constitution.
Community Impact: Allows cash for General fund operations until property tax receipts arrive in late 2022.
Department Recommendation: Recommend approval
Project Implications: Provides short term cash financing for operational needs in 2022.
Community Issues/Concerns: None
Department Issues/Concerns: None
Contract Modification (Delete this chart only if the Requested Action is for a NEW award. Simply insert the text “New Procurement.” If the Requested Action is for a Contract Modification ((Renewal, Amendment, Change Order, Extension, Increase Spending Authority)), the chart should remain and be completed.)
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Current Contract History |
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Dollar Amount |
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Original Award Amount |
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$.00 |
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1st Renewal |
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$.00 |
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2nd Renewal |
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$.00 |
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Extension #1 |
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$.00 |
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Total Revised Amount |
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$.00 |
Contract & Compliance Information (Provide Contractor and Subcontractor details.)
N/A
Exhibits Attached (Provide copies of originals, number exhibits consecutively, and label all exhibits in the upper right corner.)
Contact Information (Type Name, Title, Agency and Phone)
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Hakeem Oshikoya, Finance Director 404-612-7641
Contract Attached
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No
Previous Contracts
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Total Contract Value
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Grant Information Summary
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Cash |
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Match Required: |
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In-Kind |
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Approval to Award |
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☐ |
Apply & Accept |
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Fiscal Impact / Funding Source
Funding Line 1:
General fund, Non-Agency, Cost of Issuance 100-999-D100-1609
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Key Contract Terms |
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Start Date: Upon approval |
End Date: 12/31/2022 |
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Overall Contractor Performance Rating:
Would you select/recommend this vendor again?
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