Resolution authorizing the issuance, sale and payment of general obligation improvement bonds in an aggregate principal amount not to exceed $660,000,000; and providing for the levy of ad valorem taxes for the payment of debt service on the bonds.

This resolution authorizes the Metropolitan Government of Nashville and Davidson County to issue General Obligation Improvement Bonds, Series 2026A, 2026B, and 2026C, in an aggregate principal amount not to exceed $660,000,000. The bonds are primarily for two purposes: (i) to retire outstanding general obligation commercial paper bond anticipation notes, and (ii) to finance various public works projects. The bonds are direct obligations of the Metropolitan Government, secured by an irrevocable pledge of unlimited ad valorem taxes on all taxable property within the Metropolitan Government. Interest will be payable semi-annually on January 1 and July 1, commencing July 1, 2026. The Series 2026A bonds are not subject to optional redemption, while Series 2026B and 2026C bonds are optionally redeemable on or after January 1, 2036. This issuance occurs as the Metropolitan Government addresses a $46.7 million (12.6%) decrease in its General Fund balance in FY2025. The FY2026 operating budget, totaling $3.8 billion (a 15.3% increase), includes $74.8 million for a new Sustainability Reserve Fund and $47.8 million for General Fund balance restoration to meet policy targets. Property tax revenue is projected to increase by $481.97 million (30.9%) in FY2026 due to a 45% median increase in property values from the 2025 reappraisal, allowing for a combined property tax rate of $2.814, the lowest in Metro history. Future borrowing includes up to $825 million in Series 2026D bonds for refunding and a $158 million tax anticipation note authorization for FY2026. The capital improvements budget prioritizes schools, parks, transportation, and a $45 million investment in the Unified Housing Strategy.

This bond issuance ensures continued funding for essential public services and infrastructure projects like schools, parks, and transportation, without directly increasing current tax rates. However, the repayment of these bonds will be supported by property taxes, meaning residents will continue to contribute to the city's long-term debt obligations. The city's financial health, including its ability to manage existing and future debt, directly impacts the quality and availability of public services.

high