Fairview leaders review bond funds, northwest highway work and capital projects as 2026 spending deadline looms

City staff and commissioners on Tuesday reviewed the status of two municipal bonds and several capital projects while staff warned that bond proceeds must be spent by Dec. 15, 2026.

Tom Doherty, a city staff member who presented the materials, told the Board of Commissioners that “our drop dead deadline to have all these proceeds expended is 12/15/2026.” He said a financial adviser had cautioned the city against leaving funds unspent, noting it would harm the city’s credit and borrowing capacity.

The discussion centered on two bond issues labeled in meeting documents as 2021A and 2021B. Doherty briefed commissioners that the city issued the 2021A bond to refinance an earlier 2015 issue, reducing the interest rate from 2.76% to 1.45% and producing roughly $83,000 in interest savings. He said the city’s current annual debt service payment for that bond was about $242,010.

Doherty described the 2021B issue as larger: the council received proceeds initially shown on staff materials as $9,695,000 plus a returned good-faith deposit, leaving a net amount deposited in the city’s account of about $9,000,790. He said the average interest rate on 2021B over the life of the bond was about 2.07% and that the issue was currently scheduled to retire in fiscal year 2051.

Why it matters: Doherty told commissioners the Dec. 2026 deadline is strict and that leftover bond proceeds could damage the city’s standing with investors. He said staff wants to move money into projects now rather than risk having funds stranded when the deadline arrives.

Projects and priorities

Doherty walked commissioners through the staff list of projects funded or eligible for spending from 2021B proceeds. That list included the Northwest Highway/State 96 intersection project (including right-of-way work tied to a proposed Fire Station 32 site), property acquisitions adjacent to City Hall, a police training facility, a resurfacing program and several smaller parks and signage items. Doherty said the bond spreadsheet is a “living document” and that estimated remainders can change as staff refines costs.

On the Northwest Highway project — the meeting repeatedly referred to it as the city’s largest current public-works effort — Doherty said engineering and planning work conducted by Reagan Smith is nearly complete and that the project is moving into the right-of-way phase. He said the city is pursuing multiple funding sources, including the developer contribution tied to the Belle Haven (Bellehaven) subdivision, the Tennessee Department of Transportation and GNRC, and noted staff is also discussing short-term financing as a backstop. “John said it would be better for the city financially to take out a short term capital outlay note and just pay it off,” Doherty said, relaying advice from financial adviser John Werner.

Commissioners pressed staff about the schedule and developer contributions. A section of the development agreement presented at the meeting says the developer’s contribution is payable within 30 days of the city’s award of a construction contract and issuance of a notice to commence roadway construction; if a notice to proceed is not issued before the developer’s plat approval, the developer may post a surety instrument for up to five years. Staff said the city was likely within roughly 12 months of issuing a notice to proceed for the right-of-way and intersection work.

Police training facility and other projects

Commissioner Roberts raised concerns about the police training facility’s listed cost. Roberts said she had understood the board approved $750,000 for the project during the amended budget process and asked why the staff sheet showed an estimated remainder of $1.2 million. “I remember saying this a few times about the total cost of the police training facility not exceeding $750,000,” Roberts said. Doherty responded that the consultant (CEC) had provided an early estimate “somewhere between $750,000 and $1,200,000,” and apologized for not circulating detailed plans and cost documentation sooner.

Other items on the project list included property acquisition (Doherty said the budget shows $373,000 spent and an estimated $2.9 million remaining, with two parcels flagged: about 5.36 acres in front of City Hall and a small parcel between City Hall and First Bank), public works lot upgrades, playground shade and site amenities, and replacement of faded/custom street signs in the Casselberry area. On property acquisition, Doherty said staff preferred to pay cash for land where possible.

Documents and transparency

Several commissioners asked that the bond spreadsheets and supporting documents be posted in a persistent location on the city website so residents can review them ahead of meetings. Doherty agreed staff could post the materials with the meeting agenda or maintain a perennial link on the city site.

Grants and next steps

Doherty said staff had identified roughly $160,108 in grants that the city could pursue this year, led in part by a newly hired economic development position tasked with grant seeking. Commissioners asked staff to accelerate document sharing, provide the consultant plans and cost estimates requested for the training facility and Justice Center, and keep the Northwest Highway project on a tight schedule to avoid forfeiting developer contributions.

Ending

No formal votes were recorded during the workshop portion. Commissioners directed staff to provide the requested cost and design documents and to post the bond information online; staff said it would continue work with engineers, the developer and state partners and would return with additional detail at upcoming meetings.