News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
Cookeville will enter the finance market to issue some $20 million in bonds to pay for multiple projects.
City Manager James Mills said the city will use the money for two road projects, the current phase two and design for phase three of 10th Street as well as phase one of West Stevens Street improvements. Money will also go to the construction of two new fire stations, a splash pad and other changes at Cane Creek Park, and upgrades to CPAC.
“Issuing the $20 million in bond debt will require utilizing some of the fund balance for about five years, reducing to approximately $16 million,” Mills said. “For about five years, we would have to draw down into that fund balance. But again, even after five years, we only reduce that fund balance to $16 million. We were in sound financial shape to be able to issue bonds of up to $20 million.”
The interest rate will not exceed five percent. Imel said the city plans to issue the bonds in two $10 million requests, one this year and one in 2025.
The city’s current obligation stands at $28 million, with the majority being the debt on the new police station. Mills said the bonds will not pay for all of the projects, “but this will get us a long way towards that.”
Council must approve a detailed bond agreement at its meeting later this month.
