During the most recent Knoxville City Council meeting Monday, the council approved a resolution authorizing and approving a loan agreement, providing for the sale and issuance of General Obligation Corporate Purpose Bonds and providing for the levy of taxes to pay the same. City Manager Aaron Adams tells KNIA/KRLS News the approval comes at a perfect time as interest rates on the bonds are the lowest he has seen and may ever see. Adams says the city got lucky and timed the approval perfect as current interest rates on the bonds are at 1.38 percent.

Adams says the low interest rate means a great return, a great investment and a great time for the city to be in the bond market. He says the city’s financial consultants have told the city that with the lower interest rate more proceeds from the bonds will stay with the city which means more work that needs to be done can be done. 

According to Adams the revenue received from the sale of the bonds will go toward continued street improvements for this summer as well as the summer of 2021. He says the city’s bond rating continues to improve because of fiscal conservancy shown by the city as well as money set aside in reserve.