The City of Murfreesboro is moving forward with a plan on how to use and save the funds received from the sale of Murfreesboro Electric. You may recall, the electric department was sold for $240-million last year.
Murfreesboro Mayor Shane McFarland said the city plans to put the money into a trust and the money will conservatively grow at a 4% interest rate.
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MED Funds in Murfreesboro
In June 2020, the City sold its electric distribution system to Middle Tennessee Electric Membership Corporation for $240 million, which will be paid incrementally over 15 years, plus interest.
The proposed structure is expected to provide $50 million in new revenue to the City over 15 years and more than $150 million over 30 years. This will accelerate traffic infrastructure projects such as widening of Memorial Blvd to Cherry Lane, Lascassas Pike to DeJarnette Road, and Old Fort Parkway from SR 99 to I-24. It may also fund construction of a long-planned bridge over I-24 to reduce delays at I-24 interchanges. In addition, it will advance construction planning for West Park by adding $5 million startup funding. Funding of Strategic Partnerships will increase four-fold over 15 years, totaling approximately $12 million during this period. Creating the trust potentially provides additional funding for other much needed capital projects thus reducing the City’s debt.
