Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the School Bond Notes topic
No spam. Unsubscribe anytime.
Franklin County Commission approves up to $1.8 million in school bond anticipation notes for middle-school improvements
Summary
The Franklin County Commission adopted Resolution 8A-0818 on Aug. 20, 2018, authorizing up to $1.8 million in general obligation bond anticipation notes to finance capital improvements to the county’s two middle schools; the measure passed by voice vote, recorded 12 ayes and 2 nays.
The Board of Franklin County Commissioners adopted Resolution 8A-0818 on Aug. 20, 2018, authorizing the issuance of general obligation school bond anticipation notes in an aggregate principal amount not to exceed $1,800,000 to finance capital improvements to the county’s two middle schools.
The minutes record a procedural challenge before the final adoption: Chairman Eddie Clark initially ruled to defer the bond item to the September meeting, but Commissioner Dave Van Buskirk moved to overrule the chair and Iris Rudder seconded. That motion to overrule carried by voice vote, 11 ayes to 3 nays, allowing the matter to proceed to a final adoption vote. After debate and consideration of the resolution language, Rudder moved to adopt Resolution 8A-0818; Van Buskirk seconded and the commission approved the resolution by voice vote, recorded as 12 ayes and 2 nays.
Key terms recorded in the resolution text included an aggregate authorization of not to exceed $1,800,000; interest not to exceed 4.0% per annum; notes issued in registered form and maturing no later than the second anniversary of issuance unless the mayor sets an earlier maturity; optional redemption at par plus accrued interest; and the county’s pledge of its full faith and credit and unlimited ad valorem taxes as additional security should bond proceeds prove insufficient for payment.
The resolution delegates sale authority to the county mayor, permitting a public informal bid or a privately negotiated sale at a price of not less than 99% of par, and allows the mayor to reduce par amount, adjust principal and interest payment dates and, if needed, issue the notes in draw-down form to finance project costs as incurred. Proceeds are to be deposited in a designated "2018 Bond Anticipation Note Construction Fund" and used solely for the projects and related issuance costs; any remaining funds after project completion are directed to debt service.
The minutes include the full resolution text as part of the record. The resolution cites applicable provisions of Tennessee law authorizing school bonds and bond anticipation notes. The minutes do not list individual roll-call votes by commissioner name for the adoption; results are recorded as voice tallies.
