Franklin BOC Agrees to Borrow to Make Ends Meet

By MJ Kneiser, WLHR Radio, Lavonia

Franklin County will borrow the money it needs to meet its obligations through the end of the year.

The Board of Commissioners signed off on the plan at their regular meeting last night in Carnesville.

During their work session last week, County Manager Beth Thomas told the board the County needs to borrow money because the reserve funds have been depleted.

“As I have been forewarning in both the budget report and to you, the Commissioners, we are out of reserves,” Thomas said last week. “We have cashed the last of our CD’s for June 30th to make sure all of the AP (accounts payable) gets paid and we have only the minimum monthly income coming in from the courts. Until our tax revenue begins to come in, we will be in a cash flow crisis.”

Thomas recommended the County take out what is called a Tax Anticipation Note to cover expenses for the next five to six months.

“In situations like this, counties are allowed to take out Tax Anticipation Notes,” she said. “Those notes are only for short-term cash management, they’re sold only to the bank. They’re only for short-term cash management. At the end of property tax revenue collection cycle, it will be paid back. It will be paid back by the end of 2015.”

Thomas said the note would be for about $2.2 million dollars.

The money will cover the County’s expenses until the tax revenue begins to come in at the end of the year.

After hearing from Thomas Monday night, the Board voted unanimously to approve a resolution to borrow the funds.