The Murfreesboro City Council Wednesday, Feb. 13 approved borrowing $58 million -- or $425.30 for every man, woman and child in the city -- to pay for a lengthy to-do list, according to a press release.
The Detailed Bond Resolution and Loan Agreement with SunTrust Bank for $58 million at 2.84 percent interest rate over a 15-year term will fund building projects in nearly every city department, City Manager Craig Tindall said.
"We look forward to implementing the many infrastructure projects necessary for a growing city, especially in the area of schools and public safety," Tindall said.
Significant 2019 CIP projects include:
• Schools: $29.1 million for the new Salem Elementary School on St. Andrews Drive and Veterans Pkwy.
• Public Safety: $4.299 million for the Doug Young Public Safety Training Center; $1.8 million for Fire Station 11 in the Blackman area and $1.2 million for Fire Station 10.
• Airport: $1 million for a new Airport Terminal and $2 million for the Airport South Apron Development for aircraft parking.
• Traffic: Road construction projects include $4.45 million for Rucker Lane Reconstruction; $1.6 million for Robert Rose Drive; $2 million for Brinkley Road Reconstruction; $500,000 for Rutherford Blvd. Extension; $500,000 for Caroline Farms; $200,000 for Gateway Extension to Robert Rose.
• Parks & Recreation: 3 million for Greenway Phase 4; $420,000 for Cannonsburgh Village; $350,000 for Jordan Farm Soccer Complex; $300,000 for Greenway North Connector; $200,000 for McKnight Park Renovations; $100,000 for Greenway Reconstruction; $80,000 for Oaklands Park.
What's interesting about it?
$58 million is a lot of money, but that's not the most interesting thing about the transaction.
For the past 30 or so years, the city has almost exclusively used the Tennessee Municipal Bond Fund to borrow money for capital projects. An arm of the Tennessee Municipal League the TMBF lends money to local governments at a variable rate.
Past city managers Rob Lyons and Roger Haley have been closely aligned with the TML and TMBF.
But Tindell is not.
Tindell and Budget Director Erin Tucker made a point in the press release to point out the good deal they got from SunTrust.
"We benefited from an aggressive bid issuing the debt through SunTrust," Tucker said. "There was significant savings in the cost of fees incurred which was half as much as the cost in 2018."
"In locking in the fixed rate with SunTrust, we also appreciate building a closer relationship with the regional bank," Tindell said.
Lyons and Haley both touted the TMBF has a more responsible way to borrow because of the low variable rate and a short loan term.
We may find out who was right.
