RESOLUTION NO. RS2009-1081

A resolution requesting the Davidson County Delegation to the Tennessee General Assembly introduce and enact the necessary legislation to repeal all of the state law provisions allowing local governments to create certain “Authorities” as quasi-governmental entities.

WHEREAS, Tennessee state law enables local governments to create a number of “Authorities” such as Hospital Authorities, Sports Authorities, and Convention Center Authorities for the purpose of constructing, operating, and maintaining various projects within the government’s jurisdiction; and

WHEREAS, these Authorities typically have the ability to enter into agreements for the operation and management of a project, to employ experts, to lease all or part of a project to a private entity, to sell property owned by the Authority, and to issue debt in the form of revenue bonds; and

WHEREAS, both the Local Government Public Obligations Law, codified as Chapter 21 of Title 9 of the Tennessee Code Annotated, and the Metropolitan Charter provide a mechanism for a public referendum on general obligation bonds issued by the Metropolitan Government; and

WHEREAS, these Authorities have the effect of circumventing the will of the people since state law does not include such public referendum provisions for revenue bonds issued by the Authorities; and

WHEREAS, the citizens of the Metropolitan Government deserve to have the right to decide whether the government should be constructing large capital projects such as stadiums, arenas, or convention centers that could have serious long-term financial repercussions for the city; and

WHEREAS, it is in the best interest of the citizens of the Metropolitan Government that the Tennessee General Assembly repeal the existing laws providing for the various local government Authorities.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. That the Metropolitan County Council hereby goes on record as requesting the Davidson County Delegation to the Tennessee General Assembly to introduce and enact the necessary legislation to repeal all of the state law provisions allowing local governments to create certain “Authorities” as quasi-governmental entities.

Section 2. The Metropolitan Clerk is directed to send a copy of this Resolution to each member of the Davidson County Delegation to the Tennessee General Assembly.

Section 3. That this Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Eric Crafton