Equipment Leasing Program
ACCG began the Equipment Leasing Program after counties expressed a need to acquire major capital items. The goal of the program is to improve ease of application and administration for leases, while providing low interest rates for participating counties. Over $100 million for individual capital needs has been provided through the program to more than 60 counties.
Under the program, ACCG leases equipment purchased to counties, using funds provided through the program's financial institution, Wells Fargo. Financing can be for a period of time not exceeding the useful life of items financed and counties must meet established credit tests, including balanced budgets and expenditures, demonstrate a sound financial history, a healthy local economy and a positive general fund balance.
Rates available to counties are extremely competitive and counties are encouraged to call ACCG to get a rate quote. Rates change weekly depending on market conditions, but are at a fixed rate once the county executes its contract to lease purchases. Rates are competitive and make lease-purchasing a viable option for paying as you go. The map pictured includes counties that have most recently participated in this program.
For more information on ACCG Financial Services please contact Randy Hartmann at 404-522-5022 or rhartmann@accg.org
Facilities Financing
County governments are increasingly called upon to construct capital facilities to meet service demands, due to population growth or because of federal or state requirements. Counties have a number of options available to pay for these projects, including cash financing, general obligation or revenue debt, special purpose local option sales tax, federal or state grants, or lease-purchase contracting.
Under the ACCG Leasing Program, funds to pay for participants' projects are raised through the sale of ACCG securities in the financial marketplace or through direct bank loans. To participate, counties must meet standard measures of financial stability and must need the funds for essential county government purposes. The timing of each issue is dictated by participating counties' needs and market conditions.
Participating counties lease their facilities from the association until their final lease payment is made. Within the past five years, ACCG has participated and assisted with over $275 million worth of projects
For more information on ACCG Financial Services please contact Randy Hartmann at 404-522-5022 or rhartmann@accg.org
Short Term Operating Expenses
Numerous counties borrow short-term operating funds in anticipation of property tax revenues being received by the county. Short-term borrowing is specifically authorized under the Georgia Constitution, so long as loans are repaid in the calendar year during which they are made.
Originally, ACCG's Pooled Tax Anticipation Note (TAN) program was developed for two reasons: 1) to allow counties with small financing needs to save on borrowing costs by pooling a number of individual loans into one securities offering through ACCG and 2) to have an alternative source of funding for counties that did not feel they were receiving the lowest possible rates for their loans.
While the pooling structure reduced borrowing costs it required participants to all borrow at the same time. The program has now evolved into a flexible financing vehicle that allows ACCG members to get competitive TAN financing at their convenience. The program has encouraged other lenders to become more competitive in pricing TANs and even counties not participating in the ACCG TAN program have benefited from overall lowering of rates through the higher competition.
The TAN program allows counties to participate in a program with a history of low, competitive interest rates combined with the expertise to ensure compliance with all federal and state legal and regulatory requirements. Counties already pre-approved for participation in the Equipment Leasing Program are automatically authorized to participate in the TAN Program.
For more information on ACCG Financial Services please contact Randy Hartmann at 404-522-5022 or rhartmann@accg.org
