KNOXVILLE, Tenn. (Sept. 7, 2010) -- Today, Knox County Commission approved a refinancing plan presented by new County Mayor Tim Burchett. The plan is expected to save the County over $3 million.
The County had two leases in place for energy management improvements totaling $34.1 million. These leases were at 3.85% and 4.6% over 14 years.
The resolutions approved by the Commission allow the County to go out for bid to replace these two debts with lower interest rates. Current market expectations are in the 2.5% fixed rate range over the same 14 year timeframe.
Knox County Schools are responsible for $22.5 million of the leases and would realize about two thirds of the savings. The County general would realize the remaining one third.
If the County’s market expectations hold, the possible savings for the Schools is $2.3 million and the County general of $1.2 million for a total of $3.5 million. Rates will be determined with the lowest bid on general obligation bonds.