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Commission authorizes up to $2.42 million capital outlay note to replace ACES HVAC
Summary
The commission approved a capital outlay note not to exceed $2,421,900 to finance Year 1 of an Ashland City Elementary School HVAC replacement; the resolution notes Comptroller approval and amortization requirements under Tennessee law.
Cheatham County commissioners authorized a capital outlay note of up to $2,421,900 on Dec. 19 to fund the first year of the Ashland City Elementary School HVAC replacement project.
The resolution—introduced by the Budget Committee and moved by Diana Pike Lovell, seconded by David Anderson—authorizes the county mayor (chief executive officer) to issue and sell interest‑bearing capital outlay notes, subject to approval by the Tennessee Comptroller of the Treasury or the Comptroller’s designee. The resolution cites Parts I, IV and VI of Title 9, Chapter 21, Tennessee Code Annotated as the statutory authority for issuing the notes.
Key points recorded in the resolution and packet:
• Maximum principal amount: $2,421,900.00; designation: "School HVAC Replacement Capital Outlay Notes, Series 2022." • Interest rate: must not exceed the legal limit provided by law and the resolution contemplates a weighted average maturity consistent with the project life. • Maturity: notes to mature within three fiscal years after issuance unless otherwise approved by the Comptroller; amortization and mandatory redemption language included. • Sale of notes contingent on written approval by the Comptroller of the Treasury or designee.
Board of Education and budget committee votes were recorded in the packet. The resolution instructs that after the sale of the notes the county must prepare and submit annual budgets consistent with the statutes and the Comptroller’s requirements.
Next steps
Comptroller review and approval of the note sale are required before issuance; the county and Board of Education will follow procurement and construction bidding processes for the HVAC replacement as appropriate.
