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Committee recommends prepaying promissory note for Hart Road property after missing comptroller approval
Summary
Staff told the committee the city did not secure comptroller approval when it increased indebtedness for last year’s Hart Road purchase; the committee voted 3–0 to recommend a resolution to prepay the promissory note using available fund balance to avoid a self-report to the comptroller.
The Budget and Finance Committee on March 3 favorably recommended resolution 25‑69, authorizing prepayment of a promissory note tied to last year’s Hart Road property purchase.
Ms. Holdren explained that when the city bought the Hart Road property the previous year, the promissory note had increased the city’s indebtedness and required comptroller approval. Staff recently discovered comptroller approval was not acquired. Holdren said staff consulted bond counsel and John Warner, the city’s municipal adviser with Cumberland Securities, and that counsel advised preparing a plan before contacting the comptroller.
To avoid a self-report, staff proposed and the committee recommended prepaying the note from available fund balance; Holdren said the fund balance provides ample room to settle the note. When asked whether the promissory note allowed prepayment, staff confirmed the terms permitted discretionary prepayment.
The committee moved to favorably recommend the prepayment resolution to the Board of Mayor and Aldermen and approved the motion 3–0. If the board approves, staff will use fund-balance resources to retire the note and then report to the comptroller as necessary under counsel guidance.
