The Fentress County Commission is considering issuing up to $9.2 million in bonds to refinance the county jail.
County Executive Jimmy Johnson said the refinance would save the county over $2 million.
“It will actually take two to three years off of the final sum of it,” Johnson said. “It will also reduce the payment yearly. And it will also approximately save $2.25 million on the note.”
The Fentress County Commission will consider the bond issue at its meeting tonight. That meeting will be at 6 p.m. in the Fentress County Courthouse.
Johnson said with interest rates so low, this was a good opportunity to relieve some of the county’s debt. He said the county can both save money and pay off the debt sooner.
“I believe it was set up as a 30-year bond,” Johnson said. “It will actually take two or three years off of it. And the savings will come over the years to more than $2 million.”
Another advantage in refinancing is that the county can put the debt into its own name. Johnson said that will help Fentress County to better manage that debt in the future.
“The ID Board has it at this time,” Johnson said. “So, we’ll be refinancing in the county’s name and the ID Board won’t be tied up with it.”