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Franklin County authorizes up to $450,000 capital outlay note to install county fiber
Summary
The Franklin County Commission on Feb. 18 authorized issuance of a general obligation capital outlay note, not to exceed $450,000, to finance county fiber installation. The unanimous vote (13–0) empowers county leaders to sell notes and dedicate tax revenue for repayment.
The Franklin County Commission voted unanimously on Feb. 18 to authorize the issuance of a general obligation capital outlay note in an amount not to exceed $450,000 to pay for county fiber installation and related equipment. Chairman Chris Guess presided over the regular session at the Franklin County Courthouse in Winchester.
The resolution (2g-0225) authorizes issuance of notes for constructing and equipping public infrastructure, plus costs of issuance and related professional fees. The vote was 13–0 in favor; the motion was made by Commissioner B. McMillan and seconded by Commissioner C. Wiseman.
According to the resolution language adopted by the commission, the notes will be issued under state law authorizing capital outlay notes; the county pledged its full faith and credit and authorized an annual tax levy, if needed, to pay principal and interest. The county’s sale documents will permit notes to be sold in one or more series and may include term-note structures with mandatory redemptions at the discretion of the county mayor.
The resolution directs that proceeds be held in a special General Obligation Note Fund and used to pay issuance costs first and then to finance the fiber project. Any unspent funds after project completion are to be transferred to the county’s debt-service fund for payment of principal and interest.
The measure also authorizes the county mayor to engage the county’s municipal advisor and bond counsel, to finalize maturity schedules consistent with state law, and to take other administrative steps needed to sell the notes and close the transaction. The text of the adopted resolution cites the Tennessee statutory framework for capital outlay notes and requires approval by the state comptroller or designee if the amortization schedule does not reflect annually level debt service.
Next steps: county staff will work with the county mayor’s office and financial advisers to price and sell the notes, subject to any additional approvals required under Tennessee law. The commission’s action authorizes the borrowing; it does not itself specify the exact interest rate or sale date.
