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City of Knoxville Saves Money Through Sewer Improvement Bonds

Posted: Thursday, November 4th, 2010 at 6:28 am
Author: KNIA/KRLS News-Samantha Smith

The Knoxville City Council approved the issuance of a $710,000 General Obligation Note at their meeting this week to help finance the South and Jefferson Street storm sewer improvement project. City Manager Dick Schrad says the project costs just over a million dollars but the city was able to issue an additional bond without affecting the current debt service levy. The bonds were purchased for a rate of 2.7%. In addition, Schrad says the city was able to save additional money since Iowa State Savings Bank was involved with the original GO bond issuance. Schrad says the project is going well. He says the storm sewer installation will be finished this fall and whether or not the weather cooperates will determine if the paving can be finished this year as well.