Nashville Proposes $300M Capital Plan, GO Bonds

BRADENTON, Fla. – Nashville, Tenn. Mayor Karl Dean has filed a $300 million capital spending plan for fiscal year 2014.

The plan must still be approved by the Metro Council.

The largest portion of the proposed $300 million spending plan is $95 million for Metro Schools to pay for new and replacement facilities as well as for maintenance and expansions.

The capital plan also provides funds for public works projects, bridges, parks, riverfront redevelopment and general government needs.

“We need to keep investing in the things that make this a great place to live and work,” Dean said in a release. “This capital spending plan will help make Nashville an even better city by maintaining and expanding our schools, repairing roads and building sidewalks, expanding our greenways and bikeways, investing in mass transit and making it easier and faster for small and mid-size companies to open their doors.”

General obligation bonds eventually will be sold to support the plan, according to chief financial officer Rich Riebeling.

“Once we receive council authorization on projects we initially fund through our commercial paper program,” he said Thursday

Riebeling does not anticipate going to the bond market for a GO sale for at least another three or four years, he said.

The Metro Council begins the process of considering the fiscal 2014 GO resolution at its meeting on Tuesday. It is expected to be referred to the Council’s Budget and Finance Committee for review.

Nashville’s GO bonds are rated Aa1 by Moody’s Investors Service and AA by Standard & Poor’s.

The city last sold $374.66 million of GOs on April 16 at a true interest cost of 3.21% to refinance commercial paper and provide new money for capital projects.

The bonds sold with 5% coupons and yields ranging from 1.28% in 2020, to 2.41% in 2026, and 2.94% in 2033.

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Tennessee
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