The Knox City Council approved an ordinance to refinance the water bonds.
John Julian from Umbaugh and Associates explained to the Knox City Council members last week that the city has $1.5 million outstanding on bonds from 1988 and from 2006 and refinancing now could save the city up to $10,000 a year throughout the remainder of the life of the bond.
Julian said it depends on where the interest rates are but he hopes that he can close on this refinancing by the end of the year.
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.
