Fitch Ratings expects Fulton County to pay its $200 million of TANs.
New York: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, expects Fulton County will pay its $200 million of outstanding tax anticipation notes (TANs) due on December 29.
The county has been working with mortgage companies to facilitate and encourage the payment of tax bills before the January deadline. Tax payments are typically held in escrow by mortgage companies, meaning funds are likely on-hand already, and an incentive exists from the property owner perspective to pay before year-end for real estate tax deduction purposes. The county has indicated receipt of more than $84 million in current year tax receipts to date, or roughly 18% of the annual levy. The tax commissioner has received an additional $40 million which will be distributed to the county on December 22.
The delay in tax receipts has forced the county to borrow from various non-general fund resources to meet its operating needs since November, and the county may rely on these resources to help cover the TAN repayment if sufficient tax resources are not received. The county has indicated it has current unrestricted cash balances of roughly $15 million in the capital improvement fund (funded by prior year general fund transfers), $12 million in the transportation improvements fund, $19 million in risk management funds, and $130 million in the water and sewerage system fund. The county has initiated various expenditure measures to ensure sufficient resources remain in these funds over the next month.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Mar 6, 2018|
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