News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
Fentress County Commissioners will consider a plan to refinance the Justice Center based on lower marketplace rates.
The County Budget Committee voted unanimously Thursday night to support the refinance. It will save the county some $2.2 million over the next 30 years.
Cumberland Securities of Knoxville presented the plan which includes fixed interest rates under 2.5 percent. The county’s original FDA loan on the Justice Center has rates of about 3.5 percent. The refinancing will also pay off the center in 2050, three years earlier than the original 2053 date.
The committee had previously supported a plan for refinancing which would have included consistently lower payments throughout the 30 years. However, officials found it would qualify as balloon debt under state rules. The county would need comptroller’s approval to move ahead with that refinancing plan.
This new plan includes higher payments than the country currently pays during the first few years of the refinancing. That will help prevent the balloon debt distinction.
County Commissioners will consider the proposal later this month and citizens would have the chance to comment.
