News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
Fentress County paying off the principal balance on the loan to build South Fentress Elementary School.
Fentress County Executive Jimmy Johnson said the county took on the roughly $7 million loan in 2010. Johnson said paying the loan off early would save the county nearly $80,000 in interest.
“We had already made a payment this year,” Johnson said. “Which run anywhere from 400 to 450 thousand dollars per year at a rate of about $4,000 a month in interest, so we had the money there in debt service which debt service all we can do is pay the debt.”
Johnson said the money was in the current fiscal year’s budget to pay the remaining $800,000 on the loan. Johnson said paying the debt would give the county some more flexibility to spend money on other projects.
“It’s good the day you pay off a debt for the citizens of Fentress County,” Johnson said. “And now we can use this money coming in here to do other things in the county and hopefully we will be able to do something.”
Johnson said the debt for the last 14 years has hindered the county from doing other projects. Johnson said the county will explore what they can do next as far as projects.
“Maybe we will take some pennies out of the debt service now that that’s not there and use it for something in the general fund that is needed,” Johnson said. “Because the only source of income that we have is through property tax and like all your counties have some type of special tax. Then your sales tax takes care of a lot of your bills also but it’s only marked for certain ones.”
Johnson said the school the county built would cost twice as much if they started building it today.
