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Claiborne County reports $500,000 capital outlay note and votes to seek $630,000 CDBG for waterline extensions
Summary
The commission filed the statutory debt report for a $500,000 capital outlay note to support waterline extensions and voted 19–1 to apply for a $630,000 CDBG grant (8% local match) to fund a separate waterline extension project serving Pine Hill/Johnson/Loy/Iron Works roads.
The Claiborne County Commission on Nov. 16 received a statutory Report on Debt Obligation disclosing a $500,000 capital outlay note issued for county waterline extensions and voted to apply for a 2021 Community Development Block Grant to fund a separate rural waterline extension project.
Commissioner Mitchell Cosby reported that the capital outlay note carries interest of 2.29 percent and a total repayment of $535,106, with annual payments beginning Oct. 16, 2021. "The amount of this capital outlay note $500,000 the interest is 2.29 percent," Cosby told commissioners while presenting the CT-0253 form, which was filed with the state's Division of Local Government Finance on Nov. 4, 2020.
In a separate vote on Resolution 2020-100, the commission authorized the mayor or his representatives to prepare and submit a 2021 CDBG application for up to $630,000 to fund a waterline extension serving Pine Hill Road/Johnson Road, Loy Road and Iron Works Road. The resolution notes that Claiborne County qualifies for the Three Star incentive, reducing the required local match to 8 percent ($54,782). The commission approved the CDBG application authorization by roll call, 19 for and 1 against; Commissioner Steve Brogan cast the lone vote against the measure.
The CDBG resolution states the county will contract Vaughn & Melton Consulting Engineers, Inc. to provide required professional engineering services for the project. The resolution also directs the County Mayor to prepare the application for submission and to certify the county's intent to provide the local match if awarded.
The debt report (Form CT-0253) included the note's issue/closing date (Oct. 15, 2020), the dated date (Nov. 4, 2020), and a year-by-year repayment schedule through Oct. 16, 2025. The filing fulfills the requirement under Tennessee law to present the Report on Debt Obligation to the governing body and to the Office of State and Local Finance within statutory timelines.
Next steps: the county will submit the CDBG application and, if awarded, proceed with engineering and contracting as outlined in the resolution. The debt service schedule for the $500,000 note remains part of the county's public record as filed on Form CT-0253.
