Fulton Receives Historically Low Interest Rate on 2013 Tax Anticipation Notes | Print |

At its May 1, 2013 meeting, the Fulton County Board of Commissioners approved the issuance of $200 million of Tax Anticipation Notes (TANs).  Wells Fargo Bank was the lowest bidder with a net interest cost of 0.149027%.   The County will save over $300,000 in interest payments compared to the 2013 budgeted amount. 

This short-term interest rate is the lowest the County has received to date.  Previously, the 2012 borrowing rate had set a record low rate. 

The County’s overall credit rating is also excellent, with a “AA” rating.  The strong short-term and long-term ratings are indicators of the County’s long history of continued strong financial management. 

The TANs represent approximately 50% of expected 2013 property tax receipts and will mature on December 31, 2013. The majority of revenue in most local governments comes from property taxes, which, for Fulton County property owners, are due in the fall of each year.  Large local governments typically make use of TANs to manage cash flow during the year.

Standard & Poor’s (S&P) and Fitch issued the current credit rating designations for this particular TAN issuance.  Fulton County was rated as SP-1+ and F1+, respectively.