Cookeville Wants To Take Advantage Of Current Rates For Bond

Cookeville City Council will consider a resolution Thursday night to begin the process of issuing some $10 million in bonds.

City Manager James Mills said that the bond issue could be used to start working on the aquatics facility and on other capital improvement projects.

“We want to get started now because we’re concerned,” Mills said. “Right now the rates are favorable on bond issues, and if we wait around until next who knows what it’s going to be. We’d rather get as much as we can now at a lower interest than wait because we’ve got places to spend the money.”

Mills said that part of the proceeds from the bond would be used to buy property and start the design for the aquatics facility. He said that it would also be used for needed capital improvements such as street improvements or fire station improvements.

Finance Director Brenda Imel said that it will take a few months to settle and close a bond. She said that hypothetically if land became available to move forward with the aquatics facility during that time, the resolution would allow the city to use general purpose funds for purchases and pay itself back through the bond.

Mills said that the budget amendment approved at the last city council meeting was to identify the potential expenditure of $15 million for an aquatics facility. Mills said that it has always been the plan that the potential aquatics facility would happen over several years using more than one bond.

“From my understanding, the $15 million from this council is what you felt like the city could afford to do towards an aquatics facility when it was built,” Mills said. “(…) I know some of you guys, Eric (Walker) in particular, had some questions about what we were reflecting here and that the public may expect us to have this done in a year. And that’s not feasible. The aquatics facility will not be open in one year.”

Mills said that by identifying the $15 million bond issue, which would help to address the aquatics facility, it doesn’t mean that the city will spend $15 million next year to finish an aquatics facility. He said that it’s not feasible to do the whole process in just 12 months.