Double-A rated Fulton County last week said it received the lowest interest rate ever on its annual sale of tax anticipation notes, which are sold to manage cash flow while awaiting the receipt of property tax revenue.
The county sold $120 million of Tans last Wednesday. Barclays Capital Inc. was the winning bidder with a net interest cost of 0.31%.
The low rate will save $2.1 million in interest payments compared to what was budgeted for the sale, officials said, attributing some of the success of the deal to receiving high short-term ratings.
The notes mature on Dec. 31 and were rated F1-plus by Fitch Ratings, MIG-1 by Moody’s Investors Service, and SP-1-plus by Standard & Poor’s.
“Even in tough economic times, Fulton County demonstrates excellent financial health,” county manager Zachery Williams said in a statement.