CLEVELAND, Tenn. — A three-member panel has taken its first steps to develop recommendations on how to spend $15 million from the sale of Bradley Memorial Hospital.

The panel members, Bill Varnell, Roger Fuller and Terri Tipton, appointed by the County Commission in April, met Wednesday to map out how they will go about their task.

They are charged with developing a policy for the funds and making recommendations. The County Finance Committee will consider the recommendations and take them to the full commission.

Bradley Memorial was sold in 2005, and a Chancery Court order puts the county in charge of investing $15 million of the proceeds. Under the order, the county can make grants annually from up to 85 percent of the investment earnings to fund capital projects that promote health, wellness and quality of life.

United Way of Bradley County oversees another $19 million of the proceeds, which is invested and also used to award grants to health, wellness and quality of life programs.

Both the county and United Way must reinvest a minimum of 15 percent of the earnings to protect the principal from inflation over the years.

But some county commissioners are asking if 15 percent is enough, and they worry that the principal may erode over time.

“Are we following our court order is the first question,” asked Commissioner Lisa Stanbery.

The order says a minimum of 15 percent, so “that doesn’t mean you have to live with 15 percent,” County Attorney Joe Byrd told the panel.

Mr. Varnell, a former county commissioner, said the money is intended to grow in perpetuity. And the county is more restricted in how it can invest than United Way, Mr. Byrd said.

But the hospital money remains a point of contention for Bradley County commissioners.

When the commission meets on July 6, the agenda includes a resolution that would lower the amount of county money available for grants from 2009 income. Instead of the already approved $602,154, the new amount would be set at $342,000 under the resolution.

Finance Committee Chairman Ed Elkins said the higher amount would continue the current shortfall in the county portion of the proceeds.