2021 Tennessee Code
Part 3 - Tennessee Education Finance Act of 1977
§ 49-3-369. Funding of Special School Districts

Any city which provides funding to a special school district, the borders of which are coterminous with the borders of the city, may provide such funding through a contract with the school district that provides that one-half (½) of the funds shall be used for the operation of the school system and one-half (½) of the funds shall be used for the issuance of bonds. Upon agreement of both the city legislative body and the board of education of the special school district, proceeds from the bond issue shall be used only for maintenance of or construction at schools in existence in the district at the time of the issuance of the bonds.