Cookeville will take the first step Thursday to issue $20 million in general obligation bonds to fund major infrastructure improvements.
That includes the 39 Depot project and the East-West Connector road project. City Manager James Mills said the city intends to split the total into two separate $10 million issuances scheduled for 2026 and 2027.
“And this doesn’t commit us to doing that second 10 million, we’re not asking, you know, if something happens and a project is delayed we can hold off on the second 10 million, but we’re going to need this first 10 million, a bulk of it, to do the 39 Depot project,” Mills said. “And we’re getting really close, John, to where we’re going to be able to bid for the parking lot and we’re going to need that for that, and you also know we’re looking at some additional property for that.”
Finance Director Jenni Nisewander said the initial resolution serves as a formal outline for how the bond proceeds will be allocated toward the city’s budgeted infrastructure priorities.
“This initial bond just goes over the highlights, this initial resolution, goes over the highlights of what the bond will be used for,” Nisewander said. “Both those have been budgeted and we’re going to need 20 million to do those projects.”
Mills said the $20 million represents only a starting point for the city’s long-term infrastructure needs. The connector and the 10th Street project will likely require the city to seek additional bond issuances in the future.
“And if we get into these other projects, you guys know, we’re going to need way more than 20 million dollars,” Mills said. “So this is just getting us started to get these projects done.”
The city is also transitioning to a new bond counsel, Bass, Berry and Sims, PLC, following the retirement of their previous attorney at Holland & Knight.
Nisewander said the detailed resolution for the bonds includes a maximum interest rate cap of 6 percent.
