Cobb commissioners to consider $64M in short-term loans as budget season nears

On Tuesday Cobb commissioners will be asked to approve taking out $64 million in short-term loans.

It’s become a regular proceeding for both the county government and the Cobb school board. The Tax Anticipation Notes (TANs) allow governing bodies to take out the loans, which are payable at the end of a calendar year, for a variety of reasons.

UPDATED: Commissioners approved the request by a 4-0 vote.

The Cobb Board of Education took out $90 million in TANs in December to get a head start on construction projects in the new Cobb Ed-V SPLOST collection period.

In the case of Cobb government, the short-term loans bridge a spending gap until the new fiscal year begins on Oct. 1. Cobb property taxes are collected in the fall of each year.

Last year Cobb commissioners took out $90 million in TANs, which are low-interest obligation notes and are subject to a bidding process.

This year, the county says it won’t know exactly how much the savings will be until the end of June, when the loans are formally taken out. Cobb finance director Bill Volckmann estimates that figure range from $300,000 to $400,000.

Here’s some background on the TANs proposal, and the resolution the commissioners will be asked to approve.

The short-term loan action comes right before the formal fiscal year 2020 budget proposal comes before the commissioners.

Chairman Mike Boyce will recommend his budget on July 8 at 1:30 p.m. Three public hearings will follow, with adoption scheduled for July 23. The hearings will be on July 9, 16, and 23.

In March Boyce held town hall meetings around the county to gain input on his proposed budget outline of $440.6 million.

That includes an across-the-board pay increase, more Sunday library hours and a reduction in transfer funds from the Cobb water system, all without a millage increase.

He also wants a bigger raise for public safety employees, who’ve been showing up in droves to demand additional compensation, retention and other measures to improve what some have called a crisis.

Last month commissioners approved a one-time bonus, at Boyce’s request, for some Cobb police officers, firefighters and sheriff’s deputies that will take effect in August.

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