Consultant: Macon-Bibb Govt. Will Start $110M in Debt | News
A financial advising company told the consolidation transition task force that the new Macon-Bibb government could start out almost $110 million in debt.
That may seem like a large number but David Rose, Vice President of Davenport and Company, says that's actually a small amount for a consolidated government to handle.
Davenport representatives commented on the speed of the city and county in paying off their current debts, which Rose says shows promise for better finance ratings for the new government.
Since Macon-Bibb County is considered a new government agency, Rose says they will have more opportunities to refinance and find investors, which could expedite their debt payoff.
Davenport and Company says the county has a better credit rating than the city, which the new government could use to its advantage by using the county's score instead of the city's. Rose says this could save the government more money, meaning more funds available for other budget areas.
Pearlie Toliver, the finance committee chair, says Davenport's presentation made her optimistic about the finance options for the new government.
The committee did not vote to hire Davenport and Company as the financial advisor for the transition task force. Members say they want to speak with other companies before making that decision.
Davenport and Company offered services like determining the debt capacity and financial guidelines for the new government. They say that bill will roll in between $35,00 and $40,000.
That would be on top of the $376,000 already racked up for the transition task force's budget. That total includes services from the Middle Georgia Regional Commission, the Carl Vinson Institute of Government, and an IT consulting firm.
The city and county will split the total budget. Bibb finance chair Elmo Richardson says his committee discussed their available funds and the county will have no trouble paying their share.
The transition team finance committee will pitch their budget proposal as well as discuss Davenport's report during next Wednesday's meeting of the full consolidation task force.