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Council authorizes up to $25 million in sewage works revenue bonds
Summary
Clarksville authorized up to $25 million in sewage works revenue bonds to fund sewer and stormwater capital projects, with bond counsel clarifying the $25 million is principal and interest is separate.
The Clarksville Town Council authorized the issuance of sewage works revenue bonds not to exceed $25,000,000 to fund sewer-collection upgrades, pump-station improvements, stormwater drainage work and development of a new stormwater master plan.
Manager Bader presented the recommendation, noting the bonds will have terms not to exceed 25 years and an interest rate not to exceed 6%. "The wastewater department desires to issue bonds in an amount not to exceed $25,000,000," Bader said. During discussion bond counsel with Frost Brown Todd (Bozella) clarified the phrasing: "The 25,000,000 is just the principal amount. Interest is above and beyond that," counsel said, explaining fees and interest treatment for municipal bond structuring.
Council members asked staff to consider a formal policy defining what the town will pay for external legal counsel or closing costs on future issuances. Staff indicated they will survey practices among peer municipalities and return with recommendations. The ordinance passed unanimously on first and second readings.
