Comptroller retroactively approves $376,500 capital outlay note for stadium lighting; county files related debt reports

The Tennessee Comptroller of the Treasury informed Rhea County that it had received and accepted a request for retroactive approval of a capital outlay note originally issued by the county on Jan. 31, 2025 for $376,500 to finance LED lighting at the high school football field and track.

In a Feb. 5, 2026 letter read into the Feb. 17 meeting record, the Comptroller's Division of Local Government Finance stated the county issued the note before receiving required pre‑issuance approval and that the letter constitutes retroactive approval under Tenn. Code Ann. Title 9, Chapter 21. The correspondence makes clear the approval is conditioned on compliance with all relevant Tennessee statutes, the county's debt management policy, and ongoing reporting requirements. The Comptroller reiterated that the county is responsible for ensuring timely payments per the note terms and for any federal tax compliance issues that may arise (the Comptroller's letter does not address federal tax status).

The county also filed debt‑report records for a separate lease financing labeled "Rhea County High School Lease Financing" (Series 2025) totaling $539,563.96 for live video display and audio equipment. The debt reports included maturities, the absence of a public offering statement (informal bid/lease), and recurring zero percent interest entries as recorded in the county submission to the Comptroller's debt portal. The Comptroller's office reminded the county of posting/reporting obligations, the need to present the report to the governing body within 45 days, and to follow debt‑management policy.

Why it matters: Retroactive debt approvals are permissible but require strict compliance with state law and reporting; the LED lighting debt and live‑video lease are public obligations that will appear in the county's debt schedules and be subject to audit and reporting requirements.