Debt for Hamilton County government will top half a billion dollars by the end of the year, officials said Wednesday.
Finance Administrator Lee Brouner said the total owed will be $503 million.
That comes after the county on Aug. 27 had $260 million in bonds priced. The bonds are set to close on Sept. 12.
The proceeds are mainly to help build new county schools and take care of multiple deferred maintenance problems.
Estimated interest payout was put at $112 million.
Hamilton County Mayor Wamp said, "Hamilton County is in a very strong financial position, evidenced by recent AAA ratings from the three major bond-rating agencies. If we are serious about improving public school facilities, now is the time to take bold action.”
Officials said with this issue the county "will be kind of tapped out" on bond issues for up to five years.
County Commission Chairman Jeff Eversole said in the interim the county will be facing some pressing needs, including enhanced infrastructure in growing areas.
Proposed projects for the $260 million issue include:
Brainerd/Dalewood to 6-12 $25 million to $30 million
Clifton Hills Elementary $10 million to $20 million
Deferred maintenance $60 million
Gateway $40 million
New North River Elementary $42 million
Soddy Daisy Middle $25 million to $30 million
Thrasher Elementary $5 million
School contingencies and other projects $10 million to $20 million
General government projects $10 million
Recreation investments $5 million
Hamilton County Water and Wastewater Treatment Authority $10 million
County Mayor Wamp and School Supt. Justin Robertson both said the list could change over time, and all the projects might not be able to be include in Phase 1.
The WWTA will be repaying the county the $10 million. Officials said the county can borrow money cheaper than the WWTA so the agency saw the opportunity to "piggyback" on the large county issue.
There will also be a $25 million bond issue at the same time that Mr. Brouner said would refund a 2015 bond issue and save the county some $1.3 million in interest costs.