Comptroller raises alarms as TLDA hears Ocoee Utility District financing plan; board asks staff to study advisor bid requirement

The Tennessee Local Development Authority on July 21 heard extended testimony and questions about a proposed financing plan from Ocoee Utility District after the Comptroller of the Treasury said the district is in a period of financial distress and the Tennessee Board of Utility Regulation (TBOR) recently froze the district—s ability to borrow.

"The thing that keeps me up at night as comptroller more than anything is the state of financial health of utilities across the state," the Comptroller of the Treasury said, framing his concerns about Ocoee—s obligations and the proposed financings.

Ocoee officials described two planned issuances: a $25 million general-obligation offering and a $37.5 million USDA financing (interim bond anticipation note). The Comptroller and TLDA staff said the combined $62.5 million would raise Ocoee—s total indebtedness to roughly $80–$90 million if approved. Ocoee officials said the additional debt would fund replacement of deteriorating HDPE pipe, strategic main replacements and a wastewater project intended to serve areas with failing septic systems.

Financial-advisory fees became the meeting—s focal point. TLDA staff identified…