Collegedale approves up to $3 million in sewer notes to fund sewer system needs

The Collegedale City Commission on Nov. 17 adopted Resolution 555, authorizing issuance of interest-bearing sewer system revenue and tax capital outlay notes series 2025 in an amount not to exceed $3,000,000.

City staff explained the borrowing will be limited to the sewer fund and will be arranged through the Tennessee Municipal Bond Fund. "This is just for the sewer fund, and we're going through the Tennessee municipal bond fund through the state for the issuance of it," staff said. Staff estimated a closing the week of Dec. 8 and projected an interest-rate range of approximately "4.64 and 4.75."

Commissioners asked whether the packet’s list of five financial institutions and their rates meant the commission had to select among them or whether staff would accept the lowest bid on the closing date. Staff clarified the institutions were quoted to provide a range and that the city would choose the bank offering the lowest interest rate at closing. "They'll choose the bank with the lowest interest rate," staff said.

A motion to approve the resolution passed on a roll-call vote recorded as unanimous. The resolution authorizes the notes to provide for payment of the city’s sewer system obligations; the adoption was treated as first and final reading.

The commission did not specify the precise date of issuance beyond the approximate closing week. The city packet listed candidate financial institutions and quoted rates but delegated the final selection to staff to accept the lowest rate on the day of closing.

Next steps: staff will proceed toward closing and return to the commission with final closing details and the selected purchasing institution when available.