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Utilizing their ‘red light’ microphones as part of the city’s new sound and video system, members of the Morristown City Council navigated a busy agenda during Tuesday’s scheduled meeting.

With regard to financial matters, Council adopted the initial resolution authorizing the issuance of not to exceed $10,000,000 general obligation bonds of the City of Morristown, Tennessee or authorizing the City to enter into a loan agreement with a public building authority and to secure the annual payments thereunder through a pledge of the City’s full faith and credit taxing power.

During the FY 2024 budget work session, a slate of projects was presented and proposed to be funded with new debt in calendar year 2023. Establishing this initial resolution has no direct financial impact. Should the city proceed with the bond/indebtedness as anticipated, the FY 2024 budget includes funds appropriated to service the debt.

“Council is aware that we’ve been talking about some capital improvements,” City Administrator Tony Cox said. “The key components of that are construction of a replacement for fire station 3, as well as some major park improvements. The resolution before you has been talked about for some time.”

After the motion to accept was provided by Councilmember Tommy Pedigo, discussion ensued.

“I know we talked about scope of services,” Councilmember Kay Senter said (referring to the list of proposed projects as shown). “I wondered if there is an opportunity after this is passed that we expand the scope of what’s listed there. Do we have some flexibility?”

Cox opined, “There are certain parameters included in the offering document for the bond, but they are fairly broad in scope and would not tie to a particular ballfield, for example.”

Chris Bessler, senior vice president with Cumberland Securities, concurred – “That’s exactly it. It’s a very broad-based resolution, so the projects can vary on it, so long as they fit within the definition listed as the project.”

As an example, Senter mentioned funds possibly being extended to the skate board park at Frank Lorino Park, to which Bessler responded – after confirming the skate park and adjacent land was fully owned by the city – “If that’s the case, then yes, that would just fall under Parks and Recreation facilities,” he said.

Senter requested that the three responses to the Requests for Proposals sent by Bessler to financial institutions be included in the meeting minutes: “So we know that we did officially extend that RFP to these individual banks and that we asked for them to commit to a 65-day guarantee rate which would have ended on Oct. 15,” she said.

The respondents were Truist Bank, which offered the 65-day guarantee, as did Webster Bank. Regions Bank offered 63 days. The bond fund decided not to participate in the RFP, Senter said, because they do not go beyond 60 days.

Council then adopted the resolution to finance the bonds, also known as the GO Bond Resolution.

“This is again part of the ongoing process that will allow Mr. Bessler and staff to begin preparing a number of documents and procedures to be able to go to public market,” Cox said.

Senter requested that Bessler discuss the fees related to the process.

“Right now, we are operating on a budget for cost of issuance of approximately $100,000, so it might be just a couple thousand more than that, depending on where the rating agency fees come in at,” Bessler said. He added the fees include: advisor, paying agent, rating, bond council, publication, marketing and offering.

Senter asked if there would be an opportunity to pay off the bonds early.

“Yes,” Bessler said. “Generally, we would provide no longer than a 10-year option to refund it, to save further money on the interest rate down the road. Here we’re probably looking at around an 8-year redemption provision.”

Council approved the awarding of several bids and contracts, the first of which was an inspection and maintenance agreement between the city and Broadway Investment Company LLC (dba Dollar General) regarding property at The Downs at Wallace Farms.

“This is an agreement between the developer and the city, laying out the responsibilities for maintenance of stormwater infrastructure. This is an ongoing agreement with the facility and meets the requirements of the ordinance,” Cox said.

Council accepted the donation of a vest for Morristown Police Department’s K9 “Rossi” from Vested Interest in K9, Inc. at a value of $1,000.

Councilmembers approved city staff to apply for the Tennessee Department of Transportation Statewide Partnership Program Grant in an amount of $300,000.00 for the Central Church Road Improvement Project.

They also acknowledged receipt of proposals for CDBG Administration Services and authorized the execution of a Master Service Agreement with BluLynx Solutions.

In response to Senter’s query as to whether the admin services would be provided remotely or in-person, Assistant City Administrator Andrew Ellard said, “It will be on a task order by task order basis.”

Council then authorized Task Order Number 2 with BluLynx Solutions in the amount of $18,500 for the completion of the 2024-2028 Consolidated Plan for CDBG Programs, which Ellard explained was a five-year plan.

“That will involve a lot of community engagement and they will be in town on a couple of occasions to help with that process,” Ellard said.

Councilmember Tommy Pedigo commented, “Am I to understand by doing this, we are obligating our CDBG money for that 4-year period of time.”

“Well, we’re an entitlement community under the CDBG program,” Ellard said. “It oversees the funds annually for that. Every five years, we have to do a consolidated plan, which is a larger umbrella strategic plan looking forward over five years. We’ll still have to do an annual action plan which gets more specific every year. This kind of plan will include the annual action plan for Year 2024. And administrative services they provide for us are paid for out of CDGB as well.

See upcoming editions of the Tribune for more action taken at the Aug. 15 meeting.