Mayor Freddie O’Connell filed the city’s latest capital spending plan on Wednesday, pledging $527 million for citywide projects. Nashville’s new juvenile justice center will account for $88 million, followed by substantial commitments to roadways and building maintenance. The Metro Council will now review the plan, along with accompanying legislation that precedes a municipal bond issuance.
Nearly a quarter of O’Connell’s plan continues funding major projects started under previous administrations. The East Bank — a vast section of the urban core eyed for total redevelopment by the city, private developers and the Tennessee Titans — gets $33 million in infrastructure dollars to rejigger the street grid and lay down basic utilities. Another $6.5 million pays for project management related to East Bank development within Metro’s Planning Department. Part of the East Bank vision includes moving Nashville's juvenile justice center from its current site next to Nissan Stadium to the former Al Menah Shrine Temple site on Brick Church Pike.
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The $88 million for the juvenile justice center included in this plan brings the city’s total project allocation to $240 million over three phases in three previous CSPs. Other spending goes toward new solar projects, Hadley Park Library construction, turf athletic fields, sidewalks and updates to Metro technology, including $18.5 million in enterprise software from Oracle.
The mayor’s capital spending plan allocates money to specific projects outlined in the Capital Improvements Budget, an annual document that functions like a running wish list of city projects. Each capital spending plan comes at the discretion of the mayor. O’Connell’s last CSP came in at $514 million in January.
Major bond rating agencies Kroll, Moody’s and Standard & Poor have all upgraded Metro bond ratings in the past two months, giving the city strong standing on the municipal bond market.
“The ‘AA+’ long-term rating reflects our view of Nashville’s growing economy, strong financial position and proactive management team,” says Bobby Otter, an S&P credit analyst, in a recent ratings release. “The rating further reflects our view of the city’s gradually improving financial position and reserves.”
Moody's deems Nashville's outlook "favorable" despite an "elevated debt profile," pointing out a liabilities-to-revenue ratio of 227 percent. Moody's goes on to praise prudent financial management over the past five years.
If approved by the Metro Council, the new plan and associated bond issuance will be the first CSP under new Metro finance director Jenneen Kaufman Reed.
