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| Financing secured for jail work |
| By oakridger.com - Leean Tupper |
| Published: 09/14/2011 |
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OAK RIDGE, Tenn. — Construction could soon begin on a 128-bed dormitory and the design of a secure 240-bed housing pod at the Anderson County jail after county government officials on Monday locked in the interest rates for financing a $24.7 million loan. The loan will pay for the jail expansion, as well as school construction projects. "We are very pleased that the fixed interest rate came in at 3.75 percent, which is one of the lowest rates in recent history for this type of loan," Anderson County Mayor Myron Iwanski wrote in an email. In addition to the jail construction, the $24.7 million in general obligation bonds will also be used to construct a new alternative learning academy for the county school system, as well as other school construction and maintenance needs. As part of issuing the general obligation bonds, Anderson County went through a bond rating review by Moody's. The county is still under a "negative watch" by Moody's because four years ago county officials began using the undesignated fund balance -- the county's rainy-day fund -- to pay for recurring expenses, according to Scott Gibson, first vice president of Morgan Keegan. Gibson serves as Anderson County's bond advisor. "However, during our interviews with Moody's we were able to show that beginning with this year's budget we have now committed to increasing our fund balance," Iwanski wrote. "Fortunately, we were able to keep our Aa2 rating, which contributed to the very low interest rate." The county mayor said other financing options were examined in detail and it was determined that bidding the general obligation bonds on the open market was the least costly option for fixed-rate financing. With the interest rate of 3.75 percent, Anderson County will save $2.25 million in interest over the next 20 years, according to Iwanski. The county mayor said he appreciates the diligence of county Budget Director Chris Phillips and Gibson, for their efforts "in evaluating our options and working to keep the interest rate as low as possible." Iwanski said county officials in the next few days will sign contracts to begin construction on the jail expansion. School officials have already signed contracts for the design and construction of the county schools' projects. Read More. |
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