Last week The Bond Buyer, a national public finance newspaper, reported that Fulton County Tax Commissioner Arthur E. Ferdinand appealed a restraining order from the Fulton County Superior Court. In late February, the Court ordered that Commissioner Ferdinand continue to distribute school property taxes, which court-validated agreements specify must be used to help pay debt service for approximately $400 million in tax allocation bonds (TAD bonds) issued by the City of Atlanta, for various redevelopment projects.
Atlanta officials, in a recent disclosure notice pertaining to outstanding TAD bonds, stated that the tax commissioner has misinterpreted the Georgia Supreme Court's recent decision in the case of Woodham v. City of Atlanta. The Georgia Supreme Court's decision applies to any future TAD bond issues. The decision does not apply to outstanding court validated bonds for which these property taxes held in trust accounts, including the portion from the schools, are pledged as security to the respective bond holders.
The tax commissioner is obligated to comply with the restraining order of the Fulton County Superior Court while this appeal is being resolved by the Georgia Supreme Court. If the Commissioner Ferdinand chooses not to comply with the restraining order, the City will take action to have him held in contempt of the Superior Court's order.
The City cannot guarantee the results or timing of the final Supreme Court ruling related to the pending appeal. The City reasonably believes that Commissioner Ferdinand's obligations to deposit school district tax increments into the respective special funds which serve as security for validated City of Atlanta bonds will be enforced.
###
For more information about this and services of the City of Atlanta visit our website at www.atlantaga.gov or watch City Channel 26