Oak Ridge council approves capital outlay note and routine electric fund payments

The Oak Ridge City Council approved a resolution authorizing the issuance of a capital outlay note that staff estimated at about $4,030,000 (the resolution cited a not-to-exceed figure of $4,050,000) to finance electric projects, and in a separate vote authorized tax-equivalence payments from the electric fund to Anderson and Rome Counties.

City finance staff told the council they solicited eight proposals through Cumberland Securities and that the lowest overall bid carried an interest rate of about 4.19 percent, with prepayment permitted after Dec. 1, 2027. Staff said some proceeds will reimburse recently completed electric projects and some will fund new work; the exact allocation will be determined once financing is in hand.

Council also considered a routine payment from the electric fund to Anderson and Rome Counties and was told those payments are discretionary rather than mandated. Staff recommended making the customary payment now so general fund resources can remain available for other needs while utility funds address infrastructure pressure.

Both resolutions were adopted without recorded roll-call tallies by individual name on the floor; the meeting record shows the board approved the capital outlay note and listed the subsequent tax-equivalence resolution as approved (the chair announced the motion for the first item passed by a vote of 4'0). The city manager and finance staff said the debt service on the recently approved short-term loan will be presented to the finance committee for follow-up and budgeting.

Council did not receive, at the meeting, a finalized financing contract or a full amortization schedule; staff said contract documents and detailed financial exhibits will follow in committee materials and a subsequent packet.