Bibb County board authorizes pursuit of up to $35 million tax‑anticipation note to cover fall cash shortfalls
July 17, 2026 | Bibb County, School Districts, Georgia
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The Bibb County Board of Education on July 16 authorized district staff to pursue a preliminary resolution to solicit competitive bids for a tax‑anticipation note (TAN) in a maximum principal amount of $35,000,000 and a maximum interest rate not to exceed 7 percent, with final terms to be returned to the board for approval on Aug. 20, 2026.
At a Fiscal Support Services presentation, CFO Eric Bush said the district faces a timing mismatch between operating expenditures (payroll, benefits and operating costs) and receipt of ad valorem tax revenue, which arrives primarily in October–December. Bush and the district’s financial adviser from PFM, Elise Lomeli, described the TAN as a short‑term instrument to sustain operating cash flow through the low months and said the district would likely not draw the full principal amount. Lomeli gave market‑indicator ranges of roughly 3.50 percent for tax‑exempt and 4.40 percent for taxable placements as preliminary bank indications.
Bush estimated total interest and fees if the entire $35 million were drawn could be on the order of $400,000 to $500,000; he and PFM stressed that the estimate is conservative and the final cost will depend on bids and how much is actually drawn.
Board members pressed for greater detail before adopting final terms. Doctor Fickling asked for a cash‑flow analysis showing month‑by‑month receipts and expenditures; Bush said a preliminary analysis exists and that staff and advisors will produce a more detailed cash‑flow breakdown for the board. The board also discussed whether now is the right market moment to lock in financing; Lomeli said private bank placements tend to be more stable and that preliminary indications were reasonable.
The preliminary resolution passed in committee and was included in the board consent agenda; the full board approved the consent agenda that included the TAN authority. The district will solicit competitive proposals and present a supplemental or final TAN resolution for formal adoption at the August 20 board meeting.
What happens next: staff will distribute bid documents through the district’s financial advisers, collect proposals, and return recommended final terms to the board on Aug. 20 for formal adoption. The TAN maturity will be no later than Dec. 31, 2026, per the presentation.
Who said it: CFO Eric Bush presented the financial rationale and estimates; Elise Lomeli of PFM provided preliminary market indications. Board discussion included President Morton and Doctor Fickling.
Why it matters: The TAN is a short‑term borrowing tool intended to prevent cash shortages that could affect payroll and operations before ad valorem tax receipts arrive. Final cost and draw decisions will affect the district’s FY27 cash position and require a future board vote.
At a Fiscal Support Services presentation, CFO Eric Bush said the district faces a timing mismatch between operating expenditures (payroll, benefits and operating costs) and receipt of ad valorem tax revenue, which arrives primarily in October–December. Bush and the district’s financial adviser from PFM, Elise Lomeli, described the TAN as a short‑term instrument to sustain operating cash flow through the low months and said the district would likely not draw the full principal amount. Lomeli gave market‑indicator ranges of roughly 3.50 percent for tax‑exempt and 4.40 percent for taxable placements as preliminary bank indications.
Bush estimated total interest and fees if the entire $35 million were drawn could be on the order of $400,000 to $500,000; he and PFM stressed that the estimate is conservative and the final cost will depend on bids and how much is actually drawn.
Board members pressed for greater detail before adopting final terms. Doctor Fickling asked for a cash‑flow analysis showing month‑by‑month receipts and expenditures; Bush said a preliminary analysis exists and that staff and advisors will produce a more detailed cash‑flow breakdown for the board. The board also discussed whether now is the right market moment to lock in financing; Lomeli said private bank placements tend to be more stable and that preliminary indications were reasonable.
The preliminary resolution passed in committee and was included in the board consent agenda; the full board approved the consent agenda that included the TAN authority. The district will solicit competitive proposals and present a supplemental or final TAN resolution for formal adoption at the August 20 board meeting.
What happens next: staff will distribute bid documents through the district’s financial advisers, collect proposals, and return recommended final terms to the board on Aug. 20 for formal adoption. The TAN maturity will be no later than Dec. 31, 2026, per the presentation.
Who said it: CFO Eric Bush presented the financial rationale and estimates; Elise Lomeli of PFM provided preliminary market indications. Board discussion included President Morton and Doctor Fickling.
Why it matters: The TAN is a short‑term borrowing tool intended to prevent cash shortages that could affect payroll and operations before ad valorem tax receipts arrive. Final cost and draw decisions will affect the district’s FY27 cash position and require a future board vote.
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