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TLDA delays decision on Ocoee Utility District bond plan after questions about fees and oversight
Summary
The Tennessee Local Development Authority deferred consideration of a proposed debt package from Ocoee Utility District — including a $37.5 million USDA bond anticipation note and a $25 million revenue bond — after members raised concerns about late audits, TBOR oversight and unusually high municipal-adviser fees. The Comptroller moved to postpone;
The Tennessee Local Development Authority on June 23, 2025, deferred action on a complex financing proposal from Ocoee Utility District after board members and staff flagged several concerns, most notably unusually high municipal-adviser fees and the district's standing under the Tennessee Board of Utility Regulation.
TLDA staff described the proposed financing as a multi-part package: a $37,500,000 USDA bond anticipation note (BAN) with a later USDA bond of the same principal amount (the BAN would be repaid by the subsequent USDA bond), an associated $5,000,000 USDA grant, and a separate $25,000,000 water and wastewater improvement revenue bond issue. The district requested parity between the USDA loan and the revenue bonds and sought a waiver of a loan-agreement provision that prohibits additional debt when audited financial statements are late; staff said the district did not timely file audits and included an explanation letter in the packet.
Staff briefed the board…
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