Claiborne County approves up to $200,000 capital outlay note for highway office; 17-4 vote
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Summary
The Claiborne County Commission approved issuing a capital outlay note not to exceed $200,000 to finance construction of a highway department office and garage building, selecting a 2.50% rate from the bidders; the measure passed 17-4 with four commissioners dissenting.
The Claiborne County Commission on May 16 approved a capital outlay note not to exceed $200,000 to fund construction of a Claiborne County Highway Department office and garage building.
Commissioner David Mundy moved the resolution and Commissioner Steve Mason seconded. Commissioners selected the lowest submitted interest rate of 2.50% from Commercial Bank. A roll-call vote recorded 17 in favor and 4 opposed; Commissioners Shuford, Vass, Mullins and Brogan cast the four no votes.
The adopted resolution authorizes issuance and sale of the notes, sets a maximum interest cap of 4% per annum and requires approval from the Tennessee Comptroller of the Treasury before the notes are sold. The notes are described as direct general obligations of the county, pledge the county's full faith and credit, and allow for redemption terms and a sinking-fund levy as needed.
County officials said proceeds will finance construction of the highway office and garage. The resolution requires the county to prepare an annual budget and to submit that budget to the Comptroller while the notes remain outstanding.
The commission recorded the motion as carried after the roll-call tally. No public comment on the financing was recorded during the meeting.
The county will not sell the notes until the Comptroller or the Comptroller's designee provides written approval, per the resolution.