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Sevier County budget committee authorizes up to $10 million in general obligation bonds
Summary
The Sevier County Budget Committee on Sept. 7 unanimously approved Resolution 2023-XX-XX to authorize issuance of up to $10 million in general obligation bonds; Cumberland Securities said its fee would not exceed 0.5% (about $50,000) and paperwork will go through the State Comptroller’s Office.
Sevier County officials unanimously authorized the issuance of general obligation bonds in an amount not to exceed $10,000,000 during the Budget Committee meeting Sept. 7.
Mayor Larry Waters presented Resolution 2023-XX-XX asking the committee to approve the bond authorization. Waters recognized Joe Ayers of Cumberland Securities to explain the bond process and fees.
Joe Ayers, of Cumberland Securities, told the committee the firm has “a fiduciary obligation to offer the best rate” and described how the bond sale process works. Ayers said Cumberland Securities’ fee for the bond issuance would not exceed one-half of one percent, or about $50,000, and that the financing paperwork would be processed through the State of Tennessee’s Comptroller’s Office.
Commissioner Bryan Delius asked how the county could be certain Cumberland Securities was delivering the best rate; Ayers reiterated the firm’s fiduciary duty and summarized the sale steps. After discussion, Commissioner Mike Chambers moved to approve the resolution; Commissioner Kent Woods seconded. The motion passed unanimously.
The committee did not specify a project purpose for the bonds in the meeting record. The resolution, as presented, authorizes the county to issue general obligation bonds in Series 2023 up to the stated principal amount; further steps include completing the sale and complying with the State Comptroller’s filing requirements.
