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TLDA clears Nashville to issue up to $700 million water and sewer revenue bonds on parity with SRF loans
Summary
The Tennessee Local Development Authority approved Metro Nashville’s request to issue up to $700 million in water and sewer revenue bonds on parity with outstanding SRF loans, allowing the city to refund commercial paper and retire outstanding obligations.
The Tennessee Local Development Authority on April 10 approved Metro Government of Nashville and Davidson County’s request to issue water and sewer revenue bonds not to exceed $700 million on parity with outstanding SRF loans.
TLDA Secretary Thompson summarized the request and the staff review: “Metro government Nashville Davidson County presented a request to the TLDA, in order to comply with the guidelines that we have in place for SRF and TLDA. They are going to be issuing 700,000,000 in debt on parity with its SRF loans, and that is why they are required to submit this request to us,” she told the board. Staff said roughly $400 million of the authorization would be used to retire or refund the commercial paper program and up to $300 million would be issued as a refunding/tender offer.
Staff said it reviewed the city’s rating, debt-service coverage, timely audits and outstanding loans and concluded the request met TLDA’s requirements; staff recommended approval. The chair moved approval and the motion passed on a roll call with all recorded voting members voting in favor.
During the roll call, Mayor Bradshaw recorded “Aye.” Comptroller Mumpower, Commissioner Bryson and Mayor Brown also recorded affirmative votes, and Jamie Wehman indicated yes. The chair announced the item approved after the roll call.
The board’s action authorizes Metro Nashville to issue bonds on parity with its SRF obligations, subject to the parameters reviewed by TLDA staff and included in the board packet. Staff will continue standard post-approval reporting and closing processes required under TLDA policy.
