Nearly half of savings to directly benefit Knox schools
Knoxville (Feb. 8, 2012) — Knox County will save $1.43 million in avoided interest payments, thanks to a bond refinance that went to market this week. The bond sale, which amounts to a refinance of a portion of county debt, was proposed by Knox County Mayor Tim Burchett and approved by the Knox County Commission in October. The savings from the refinanced bonds beat expectations by more than $400,000.
“It is no secret that I am not a fan of debt, and I think it is important to limit our interest payments whenever possible,” Mayor Burchett said. “Refinancing debt isn’t flashy, but it is a simple way to see substantial, real-dollar savings that benefit our taxpayers. For the Knox County Schools, these savings come at a good time, as they begin working on their 2013 budget.”
Nearly half of the savings will directly benefit the Knox County Schools.
In September 2010, immediately after taking office, Mayor Burchett asked commissioners to approve a bond refinance that ultimately saved Knox County taxpayers more than $3.8 million.
Standard & Poor’s recently affirmed Knox County’s strong AA+ bond rating, citing the county’s “track record of conservative financial management” and “tight expenditure controls.”