Douglas County government spokesman Wes Tallon said the county annually uses the notes as a budgetary tool designed to help “smooth out the timing of receipts and disbursements.”
Douglas County Commission Chairman Tom Worthan said many counties are in the same situation as Douglas with regard to the timing of county revenue streams.
“We have 45 to 50 percent of our county revenue to come in within a 30- to 45-day period before the end of the year,” the chairman said.
“The approval of the [tax anticipation note] will allow us to keep a safe margin between our revenue and expenses so Douglas County is able to get through a period of time when our county, traditionally, doesn’t have a lot of revenue coming in,” Worthan said.
The commission awarded the note to the Metro Bank of Douglas County at a rate of 0.65 percent following a public quotation process involving three other banks, Tallon said.
The county will borrow the money for 205 days at a total interest cost of $31,642, he said.
Worthan credited the conservative fiscal policies of his administration and the commission for the county being in a position to allow it to borrow less money for a shorter amount of time.
“Douglas County has no long-term debt,” Worthan said. “This administration has accomplished a lot through the wise spending of taxpayer dollars.”
Worthan said the county would continue to use its current financial policies so that, in the future, it may not have to borrow any tax anticipation notes.
Douglas County will invest these funds and draw from them as they are needed for the 205-day period, Tallon said.