Chattanooga’s Hamilton County Faces Record-Breaking Debt
Hamilton County, Chattanooga – Hamilton County’s debt level is set to skyrocket, exceeding half a billion dollars for the first time. This comes on the heels of the County Commission’s approval of a $260 million bond issue, pushing the total debt to an unprecedented $507 million. The bond is scheduled to close next week.
Commission Chair Jeff Eversole warned commissioners during a meeting that the county would be “tapped out and locked in” for at least five years. Reflecting on the county’s debt trend, he noted, “In 2018, our debt hit a record $360 million. Now, with this new bond issue, we’re looking at a whopping $507 million in debt.” Eversole added that this would mean “48% of this year’s budget would be our debt.”
Breaking Down the Bond
The bond, priced on August 27 and set to close on September 12, is structured to be repaid over 20 years, a shift from the county’s previous 15-year bonds. According to Lee Brouner, the county’s finance director, the bond will accumulate an estimated $112 million in interest payments. Brouner highlighted that the county has historically paid off its debt relatively quickly but cautioned that it would be challenging to return to the bond market within the next three to four years without additional revenue.
Funding Schools and Infrastructure
The bond was proposed by Hamilton County Mayor Weston Wamp and Hamilton County Schools Superintendent Justin Robertson to address the county’s growing school facilities crisis. However, spending priorities are subject to change based on the commissioners’ decisions. Eversole emphasized that while improving school safety and infrastructure is essential, the county must also consider other needs.
“It’s vital to keep our schools safe and structurally sound,” Eversole said. “But we also have other responsibilities, such as infrastructure improvement, especially in rapidly growing areas like Ooltewah. We need to think about the safety of our citizens, including security and fire protections. We have to be multidimensional and conservative in how we address these issues.”
Fiscal Responsibility and Future Actions
Despite concerns about the county’s debt, Mayor Wamp reassured commissioners and residents that Hamilton County remains financially stable. “Hamilton County is in a very strong financial position, evidenced by recent AAA ratings from the three major bond-rating agencies,” Wamp stated. “If we are serious about improving public school facilities, now is the time to take bold action.”
As the county moves forward with these significant financial decisions, residents and officials alike will be keeping a close eye on how the funds are allocated and managed. The next few years will be critical for Hamilton County as it navigates these financial waters while striving to meet the diverse needs of its growing community.
For further information, inquiries can be directed to the contact details provided by the county officials.
