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


Covenant Transportation Has Increased Revenue For First Quarter

Covenant Transportation Group, Inc. announced Thursday financial and operating results for the first quarter ended March 31. Highlights for the quarter included the following: Total revenue of $167.2 million, an increase of 3.9 percent compared with the first quarter of 2014. Freight revenue of $143.3 million (excludes revenue from fuel surcharges), an increase of 13.5 ... (click for more)

Yoga East Wellness Center To Open Second Studio At Cambridge Square

Yoga East Wellness Center (Yoga East) will open a second location in Cambridge Square, a mixed-use community located at the corner of Ooltewah-Georgetown Road and Lee Hwy. in Ooltewah. Yoga East will be locating in what is now the 2500 square foot Beyoga Ooltewah studio. The proprietors of both studios worked together to facilitate the transition "We would first like to thank ... (click for more)

State Attorney General Says City Council Cannot Make Taxis Not Registered In Hamilton County Go Through Emissions Testing

The state attorney general's office has ruled that the City Council cannot require that taxis not registered in Hamilton County go through emissions testing. The city is dealing with the new Uber taxi service that has an out-of-town owner. Locally-owned cabs have to go through the annual emissions testing. The opinion says that local taxi owners cannot get around the emissions ... (click for more)

Chattanooga Area Bracing For Possibility Of Isolated Severe Storms, Tornadoes Not Ruled Out

The National Weather Service is feeling uncertain about today's weather pattern and has not ruled out the possibility of isolated, severe thunderstorms or an isolated tornado in our area. The greatest threat seems to be between 4 and 7 p.m. this evening. Below is the latest update: HAZARDOUS WEATHER OUTLOOK...UPDATED NATIONAL WEATHER SERVICE MORRISTOWN TN 127 PM EDT SAT ... (click for more)

The Heart Of A Teacher Makes A Difference - And Response (2)

In less than four weeks, I expect to be one of 216 graduating seniors from East Hamilton School. One could say all possible variables help a student rise to the highest levels in school; but a student is more than his environment or genetic code. He is a mixture of his own propensity and dedication to academics, coupled with a systemic team of mentors who give their all as a student’s ... (click for more)

Roy Exum: FBI To Study ‘Lickers’

About 25 years ago there was a terrifying movie called “The Silence of the Lambs.” It was so good it won the Academy Awards in all five categories – Best Picture, Best Actor, Best Actress, Best Director and Adapted Screenplay. Further, Anthony Hopkins and Jodie Foster were brilliant, but do you remember the third “star?” Scott Glenn played a character named “Jack Crawford,” the ... (click for more)