Resolution 2025-10-01

RESOLUTION 2025-10-01

INITIAL RESOLUTION AUTHORIZING THE INCURRENCE OF INDEBTEDNESS BY THE CITY OF MUNFORD, TENNESSEE, OF NOT TO EXCEED $1,200,000, BY THE EXECUTION WITH THE PUBILC BUILDING AUTHORITY OF THE CITY OF CLARKSVILLE, TENNESSEE, OF A LOAN AGREEMENT TO PROVIDE FUNDING FOR WATER AND SEWER SYSTEM PROJECTS

WHEREAS, it is necessary and in the public interest of the City of Munford, Tennessee (the “City”), to incur indebtedness through the execution with the The Public Building Authority of the City of Clarksville, Tennessee (the “Authority”), of a loan agreement (a “Loan Agreement”), for the purpose of financing water and sewer system projects, as hereinafter more fully described.

NOW, THEREFORE, BE IT RESOLVED by the Board of Mayor and Aldermen of the City of Munford, Tennessee, as follows:

Section 1: For the purpose of financing all or a portion of the costs of the extension, construction, improvement, and equipping of the water and sewer systems of the City, the acquisition of all property real and personal appurtenant thereto and connected with such work, to pay all legal, fiscal, administrative, planning, architectural, and engineering costs incident thereto, reimbursement for expenditures related to the foregoing projects, and to pay costs incident to incurring the indebtedness (collectively, the “Project”), the City is hereby authorized to incur indebtedness in the amount of not to exceed $1,200,000, for the financing of the Project through the execution of a Loan Agreement with Authority. The rate of interest payable pursuant to the provisions of a Loan Agreement shall be a fixed rate which can be reset at certain intervals and which rate shall not exceed the maximum rate of interest permitted under the laws of the State of Tennessee.

Section 2: The indebtedness evidenced by the Loan Agreement shall be payable from funds of the City legally available therefore and to the extent necessary from ad valorem taxes to be levied for such purpose on all taxable property within the corporate limits of the City, without limitation as to time, rate, and amount and for the punctual payment of said principal of, premium, if any, and interest on, such Loan Agreement, the full faith and credit of the City will be irrevocably pledged. The indebtedness evidenced by the Loan Agreement shall be additionally payable from, but not secured by, the revenues of the water and sewer systems, subject only to the payment of reasonable and necessary costs of operating, maintaining, repairing, and insuring such water and sewer systems, and to a prior pledge of such revenues in favor of other obligations of the City payable from revenues of the water and sewer systems.

Section 3: The indebtedness evidenced by the Loan Agreement shall be incurred pursuant to the provisions of Title 9, Chapter 21, Tennessee Code Annotated, as amended (the “Act”), and Title 12, Chapter 10, Tennessee Code Annotated, as amended.

Section 4: After the adoption of this Resolution, the City Recorder is directed to cause this Resolution, with the notice prescribed by the Act, to be published in full once in a newspaper published and having general circulation in the City.

NOTICE

The foregoing Resolution has been adopted. Unless within twenty (20) days from the date of publication hereof a petition, signed by at least ten percent (10%) of the registered voters of the City of Munford, Tennessee, shall have been filed with the City Recorder of the City of Munford, Tennessee, protesting the incurrence of the indebtedness by the execution of the Loan Agreement, such Loan Agreement will be executed, as proposed.

Section 5: This Resolution shall take effect from and after its adoption, the welfare of the City requiring it.

Adopted and approved this 16^th of October, 2025:

Dwayne Cole, Mayor
Attest: Sherry Yelvington, City Recorder

23oct1w