A Lakeland couple has filed suit seeking to block the sale of bonds to finance a high school wing at Lakeland Middle Preparatory School. The suit was filed Friday afternoon in Shelby County Chancery Court against the City and the IDB (Industrial Development Board) and also asks the court to require a referendum before the issuance of any bonds for Lakeland schools.
Link to the case:
Melton v. City of Lakeland et al (attached 242-page lawsuit)
The suit was filed by Cary and Lillie Melton on the following basis: declaratory judgment and injunctive relief prohibiting the defendants from issuing bonds they say violate state law; requirement of a referendum to vote on spending money for a high school; and violation of the Tennessee Open Meetings Act.
The plaintiff’s attorney is Robert L. J. Spence and the initial case was filed at 2:39 p.m. Friday (12.8.17). The case was assigned to Chancellor Walter L. Evans.
The summons to both the City and IDB are to be served by private process servers.
Mayor Wyatt Bunker said commissioners met with council yesterday and would not comment on the case.
City Attorney Chris Patterson did not wish to comment to Lakeland Currents today.
Three Boards within the City, BOC (Board of Commission), IDB and LSB (Lakeland School Board) each voted unanimously last week to approve a funding mechanism through the IDB to pay for school capital improvements including a high school wing at LMPS (Lakeland Middle School). Link to story: https://lakelandcurrents.com/thats-a-wrap-three-for-three/
On Friday (12.8.17) Moody’s Investment Services issued a high credit rating for the City in anticipation of bonds issuance. Link to the story: https://lakelandcurrents.com/high-credit-rating-given-to-city-for-bonds-issuance/
Mrs. Melton as well as other Lakeland residents have come before the three Boards in recent weeks saying the City does not need a high school since Lakeland students are served at Arlington High School through an interlocal agreement. Citizens also noted that the debt to be incurred for the building is too much for a city the size of Lakeland.
BOC officials have said the effort to issue the bonds through the IDB was an effort to fund the high school wing without a tax increase and was prompted by recent federal tax reform legislation.
They have said in public meetings that refinancing existing debt for LMPS construction and adding money to complete a high school wing could be done without a tax increase if it were accomplished before the end of this year. They said a delay would likely require a tax increase because of increased interest costs and construction fees.
