Lenoir City Schools presented a multi‑year plan to renovate and expand facilities and asked the council to authorize bonds to pay for the work. "We are not requesting an additional funding. We're not asking for a tax increase," Dr. Smith said, describing a financing plan that relies on sales tax revenue and capital reserves rather than a property tax hike.

Nut graf: The school board asked the council to approve a bond issuance of roughly $31.5–32 million to construct a separate grades 3–5 intermediate school, complete the middle‑school modernization (including a new gym and STEM spaces), and allow shared use with parks and recreation. Supporters argued the project addresses documented space and program needs; some council members and public speakers expressed concern that a concurrently planned county high school could draw students away and affect long‑term finances.

What happened at council: Council discussed the proposal and questioned enrollment projections, the effect of a new county high school, feasibility polling, and fiscal safeguards. Supporters including former school‑board members and a county commissioner urged approval as an investment in children; Dr. Smith reiterated that about 85% of the students affected are city residents and that the repayment plan is based on conservative sales‑tax projections. A motion to authorize bond issuance was made but failed for lack of majority; the mayor announced the motion "is dead for lack of majority." The council did not adopt the bond authorization at the meeting.

Implications: Without council authorization the school board cannot proceed with the bond issuance through the city at this meeting. School and city officials said they would continue discussions and return with additional information as needed.

Next steps: Council and school staff signaled they will continue to exchange information on enrollment scenarios and financing assumptions; no further action was taken at this meeting.