The Cookeville City Council plans to redeem over $7 million in bonds used to build the Highlands Business Park.
This debt payoff will save the city over $300,000 in interest.
Paying off these bonds will allow the city to move forward with the $19 million police station project. Finance Director Brenda Imel said paying off the bonds will bring down the outstanding debt amount.
“The balance on these bonds is $3,215,000,” Imel said. “We currently have outstanding over $16.4 million in debt. So with this and the variable debt that the city council had authorized paying off early last month, that’ll bring our debt down to $11,590,000.”
Imel said there’s enough in the city’s debt service fund to pay off the $7 million bonds early. She said officials are taking advantage of low interest rates as a result of the pandemic.
“The rates are actually very, very low right now,” Imel said. “That’s why we think it’s a good time to pay these off and to go ahead and issue the debt for the police station, continue on that path with that project.”
Imel said a planned debt issue later this fall will give access to borrowing the funds for the police station as well as to purchase fire apparatus.