News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
Cookeville City Council approved refunding the final outstanding bond issue from 2012 used for the construction of the Electric Department’s southwest substation.
Finance Director Brenda Imel told city council members Thursday night that the original bond was some $4 million.
“So the benefits of doing this is the interest on the remaining payments for the 2012 bonds range from 2 percent to 2 and a quarter,” Imel said. “Interest on the refunded portion of the bonds will be set at 1 percent and will result in a savings, after the issue cost to the electric department, of $30,503.”
Imel said that after the next scheduled interest payment on December 1st, the remaining $1.5 million will refund to the lower interest rate. She said that the cost of refinancing the bond totals some $20,000.
Imel said that the resolution also authorizes Waller Landsen, Dortch & Davis as the bond council, along with Cumberland Securities as the municipal advisor.
“The bonds are to be sold as a negotiated sale to a financial institution and Cumberland Securities will manage that,” Imel said.
Imel said that $7,500 of the bond cost will go to the bond council, and $12,500 to the municipal advisor.
In other business, city council also approved declaring a portion of city property surplus adjacent to 1948 Karen Circle. Planning Director Jon Ward said that there were issues with the property having a portion of an in-ground pool constructed on the city property adjacent to the lake. He said that in the process of trying to sell the property, the owner came to realize the issue.
Ward said that approximately 6,403 sq. ft of the city’s property will need to be required to remove the pool encroachment and provide approximately 10 feet of the area around the pool to provide maintenance.
