Agenda Item # 7
Columbus Consolidated Government
Council Meeting
September 26, 2017
Agenda Report # 36
TO: Mayor and Councilors
SUBJECT: Issuance of a Tax Anticipation Note in FY2018
INITIATED BY: Finance Department
Recommendation: Approval is requested authorizing the solicitation of bids to
obtain a Tax Anticipation Note (?TAN?) in an amount not to exceed $9,200,000
and to pay certain fees associated with the issuance.
Background: Due to the implementation of a County wide property tax
reappraisal, Columbus will not receive the portion of the tax payments usually
due on October 1 until December 1 of this year. Georgia Law allows for the
issuance of a Tax Anticipation Note (?TAN?) in accordance with certain
conditions. In order to avoid any anticipated cash flow deficits, the City is
soliciting Request for Bids to obtain a Tax Anticipation Note.
Analysis: The Tax Anticipation Note will help alleviate any cash flow issues
the City may experience because of the delay in receiving property tax revenue.
Financial Considerations: The Tax Anticipation Note will not exceed
$9,200,000. The preferable option would be to draw down the funds as needed to
limit interest costs associated with the note.
Legal Considerations: Council approval is requested to solicit bids to obtain a
Tax Anticipation Note.
Recommendations/Actions: Approval is requested authorizing the solicitation of
bid to obtain a tax anticipation note in an amount not to exceed $9,200,000 and
to pay certain fees associated with the issuance.
A RESOLUTION
NO. ________
A RESOLUTION OF THE COUNCIL OF COLUMBUS, GEORGIA (THE "COUNCIL") AUTHORIZING
THE SOLICITATION OF BIDS TO OBTAIN A TAX ANTICIPATION NOTE IN AN AMOUNT NOT TO
EXCEED $9,200,000 AND TO PAY CERTAIN FEES ASSOCIATED WITH THE ISSUANCE.
WHEREAS, due to the implementation of a County wide property tax reappraisal,
Columbus will not receive the portion of the tax payments usually due on
October 1 until December 1 of this year; and,
WHEREAS, Georgia Law allows for the issuance of a Tax Anticipation Note (?TAN?)
in accordance with certain conditions; and,
WHEREAS, it is the desire of this Council to explore the options of issuing a
TAN in order to avoid anticipated cash flow shortages; and,
NOW THEREFORE THIS COUNCIL HEREBY RESOLVES AS FOLLOWS:
1. The issuance of the attached RFB to obtain bids for the possible issuance of
a TAN by Davenport & Company on behalf of CCG is hereby ratified.
2. It is determined that the principal amount of any TAN issuance shall not
exceed $9,200,000, and in accordance with Georgia law, such TAN shall become
due and payable no later than December 31, 2017.
3. The City Manager is authorized to sign an agreement with Davenport & Company
in substantially the form attached to obtain their financial advisory services
for the transaction. In addition, the payment of Special Counsel fees for the
transaction in the amount of $4,600 to Grey Pannell & Woodward is also
authorized.
__________
Introduced at a regular meeting of the Council of Columbus, Georgia, held
the _________ day of _____________ 2017, and adopted at said meeting by the
affirmative vote of _____________ members of said Council.
Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Garrett voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
_______________________________ __________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor
Attachments