Comptroller Seeks Comments On Guidelines For Approval Of Balloon Indebtedness

Thursday, June 19, 2014

The Comptroller of the Treasury, through its Office of State and Local Finance, is seeking comment on proposed  guidelines for Comptroller approval of balloon indebtedness issued by local governments. The guidelines were presented at the State Funding Board meeting held on June 18. 

The board approved the guidelines in substance and requested that the guidelines be subject to public comment through June 27. After all comments have been reviewed by the Comptroller, the Comptroller may declare the guidelines effective July 1; make revisions to the guidelines to be effective July 1; or defer the effective date of July 1 and present the revisions to the board at its next meeting for further review and consideration. 

Pursuant to the provisions of Section 5 of Public Chapter 766, Acts of 2014 (effective July 1), a local government or local government instrumentality must first obtain from the Comptroller approval of the issuance of balloon indebtedness. A "local government" is defined as any incorporated city or town, metropolitan government, county, or utility district. 

“Balloon indebtedness” is defined (with certain exclusions) as debt that: 

(i) Has a final maturity date thirty-one (31) or more years after the date of issuance;

(ii) Delays principal repayment for more than three (3) years after the date of issuance;

(iii) Capitalizes interest beyond the later of the construction period or three (3) years from the

date of issuance; or

(iv) Does not have substantially level or declining debt service. 

The State Funding Board is authorized to establish guidelines with respect to Comptroller approval of balloon indebtedness. 

“It’s important that governments be very transparent to the public when issuing debt, especially when principal repayment is deferred,” Comptroller Justin P. Wilson said. “These guidelines will provide guidance to local governments regarding the information my office needs to properly review proposed transactions. We hope to supplement and update these guidelines in the coming months as we implement this new law. Receiving feedback from the public is an important part of that process.” 

Comments on the proposed revisions to the form should be sent: 

By e-mail to: IGpublic.Finance@cot.tn.gov or 

By mail to: Tennessee State Funding Board

Attn: Ms. Betsy Knotts

17th Floor, James K. Polk Building

505 Deaderick Street

Nashville, TN 37243



TBI Releases Annual Statewide Crime Study, Revealing Increases Across Tennessee

The Tennessee Bureau of Investigation released its 2017 ‘Crime in Tennessee’ report on Friday, revealing a slight overall increase in reported instances of crime in the most recent reporting year. The annual study compiles data reported from each law enforcement agency in the state through the Tennessee Incident Based Reporting System (TIBRS). The TBI’s sophisticated crime ... (click for more)

Reliance Partners Announces New V.P. Of Risk Services, John Seidl

Reliance Partners announced the addition of John Seidl as V.P. of Risk Services. Mr. Seidl is recognized as a leading expert in DOT commercial transportation compliance.   As a former Wisconsin State Motor Carrier Trooper and FMCSA investigator with more than 20 years of experience in risk services, Mr. Seidl is well-versed in the transportation insurance space. He ... (click for more)

Mayor Berke Plans Affordable Housing Fund, Expansion Of Innovation District; Creation Of Council Against Extremism

Mayor Andy Berke, in his annual State of the City Address on Thursday, said he plans to establishing the city’s first Affordable Housing Fund. He said the city plans to commit $1 million to the fund "that will be used exclusively to aid the creation of affordable and workforce housing throughout Chattanooga. These funds will be used to supplement federal funding, various ... (click for more)

Chattanooga Man Who Was Recently Charged With Murder Is Accused In Another Earlier Shooting

Chattanooga Police have charged Britian Crutcher with the September 2017 shooting of LaSandra Burdette. Ms. Burdette, 26, was shot just after 3 a.m. in the 2000 block of Ocoee Street in Avondale. Her vehicle was involved in a minor wreck just before the shooting. The shooter was in another vehicle. Police recently charged Crutcher in the homicide of 28-year-old ... (click for more)

A Tribute For My Brother – Sgt. Jonathan Gardner, U.S. Army

Seven years ago today, my family and I found out that my brother, Sgt. Jonathan D. Gardner, was seriously injured by a roadside bomb, (explosively formed penetrator - EFP), while on a mission in Kuwait. The EFP went through the bottom of his seat and put a softball size hole in his upper thigh. The doctors said that if the bomb had entered the Humvee an inch to the right, he ... (click for more)

Roy Exum: The Black Telephone

If you have never seen one in an antique store you wouldn’t know that the first telephones were contained in a not-so-small wooden box that had a snout-looking mouth piece and a separate speaker that you would hold on your ear while you talked. This was many years ago when phones were fun as compared to today’s tiny cell phones that rudely interrupt us from the task-at-hand both ... (click for more)