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County hears financing plan to start hurricane recovery projects; mayor cites $30M in state support
Summary
Financial advisers outlined a 10-year capital note designed to give the county three years before principal payments begin while the state covers initial interest and admin costs; the mayor also outlined roughly $30 million in state grants and appropriations for recovery projects and facilities.
At the meeting, financial adviser Elizabeth Selke presented a proposed financing package to allow Carter County to begin recovery and repair projects immediately while awaiting FEMA/TEMA reimbursements. Selke described a 10-year capital outlay note with the first call option after three years; the structure would pause principal payments during that initial period while the state would reimburse interest and administrative costs.
"The state is going to reimburse all interest up to 5%," Selke said, describing how the county could structure competitive bond sales to conform to that reimbursement and minimize near-term fiscal impact. She added the structure gives the county flexibility to refinance or pay down remaining balances after anticipated recovery funds are received.
Mayor Patty Whitby framed the need for financing by listing state support received: about $5 million to reimburse immediate hurricane expenditures, $5 million for the Tweetsie Trail, $20 million toward Hampton Hospital renovation, and $5 million for the Northeast Tennessee Regional Recovery Center in Roan Mountain. Whitby thanked state legislators, including Representative Renee Jones, Representative Hill and Senator Crowe, for advocacy in Nashville.
Commissioners asked technical questions about interest accrual, allowable short-term investments of bond proceeds and the timing of reimbursements; Selke and staff said they would return with additional details as the package is finalized.
Next steps: staff and advisors will continue contract and bond structuring work and return to the commission with formal ordinance/resolution language for any borrowing.
