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Two resolutions meant to provide funding for several upcoming city projects were passed in the only July meeting of the Tullahoma Board of Mayor and Aldermen.

According to a memo from city Finance Director Susan Wilson, it stated that “the initial resolution and the issuance resolution are formatted to meet state comptroller requirements. The initial resolution establishes a 20 day notice period prior to the actual debt issuance…Upon expiration of the notice period, without protest, the authorizing resolution will become effective, but will require review and approval from the State Comptroller’s Office before closing…To reduce interest expense during initial engineering and construction periods, a construction loan with three year draw down provisions throughout the Tennessee Municipal Bond Fund was selected…The City will also have the option at that time to obtain alternative financing options if we do not wish to accept the new rate offered. It is estimated that the initial five year rate would be approximately 4.29%. The issuance cost for the loan is $45,000. The proposed debt issuance companies with the City of Tullahoma’s debt policy.”

Wilson said “it’s looking like interest rates would be closer to 4.8% at this time, and by doing the construction loan and the draw pattern, we should be able to save between $600,000 to $800,000 in interest expense compared to the last time we did a loan like this…this would enable us to address the process was discussed in the work session.”

“This would allow us to accomplish a number of things that we would not be able to do without a tax increase,” said Mayor Ray Knowis.

Alderman Daniel Berry explained the purpose of the loan.

“An example of [the use of these funds] is our soccer bathrooms, so for these and a lot of the projects that are in there, when we’re using federal and state dollars, which we were doing for the ARPA funds, you have all kinds of ropes, like environmental studies and delays. So what Sue proposed was an incredible idea that would allow us to get these things done a little faster, was to do this–issue this debt–so that we could immediately get started on these projects, like when we do these sidewalks on Cedar Lane, it’s been going on for two and a half years. This allows those projects to get done sooner.”

The two resolutions related to the loan were passed without opposition. The board also mentioned that they would not be holding the second meeting of the month as they will be attending a Tennessee Municipal League conference.