At last week’s Knoxville City Council meeting, the council approved the reduction of the interest rate on the city’s sewer revenue bond, a revolving loan from the state. This means that the City of Knoxville will pay back a significantly lower amount over the life of the loan. Knoxville City Manager Aaron Adams says that approval was an easy decision for the council to make, and is a positive for the residents of Knoxville.
“The city actually borrowed some money back in 2010. That bond has some years left. And with markets doing what they’re doing, and interest rates dropping, the state actually reached out to us and other cities who have used the SRF, and offered us a rate reduction on our interest. With that change, the council had to make a formal approval of the change in interest rate. Not a hard sell when it means saving money for Knoxville ratepayers. So we’ll be saving about $138,000 over the life of the loan based on the change of the interest rate. Good news for folks and anyone who pays into the Knoxville sewer system.”
The interest rate will drop from 3.00 percent to 1.75 percent.