The Knox City Council will be considering refinancing the water bonds to save money over the life of the bonds.
Mayor Rick Chambers explained how much the city could save each year of the life of the bonds.
“We’re currently paying on two water bonds. The first one will be paid off in 2025 and we owe about $650,000 on that one. The second one will be paid off three years later in 2028 and we owe about $950,000 on that one – so, about $1.6 million. Right now we’re paying 4.75 percent interest on one and almost five on the other. Umbaugh believes we re-bond in the low threes. Over the life of 14 years, we could save about $150,000,” explained Chambers.
Umbaugh and Associates would help the city in this process.
The city council gave Mayor Chambers the approval to move forward with getting paperwork ready for the refinancing of the water bonds.