On June 15, 2021 the State Funding Board approved the issuance of the Tennessee Comptroller of the Treasury – Division of Local Government Finance (LGF) Debt Manual, which is effective immediately.
Some of the major changes in the Debt Manual include:
- All debt issued by counties including capital outlay notes must be pre-approved by LGF.
- Effective January 1, 2022 all lease financing agreements, individually or collectively issued within the same fiscal year, with a principal amount exceeding $100,000 must be pre-approved by LGF per TCA Section 9-24-101.
- More information must be provided to LGF before they can pre-approve any debt issuance.
- LGF will review requests to issue debt and respond to counties within 10 days.
Please review the Debt Manual closely before you issue any new debt since there are several new steps and information to be provided to LGF before they can approve a debt issuance. You may also need to review your written debt management policy to determine what changes may be needed.