JARRETT GOODMAN
Staff Writer
A fixed payment rate for a water and sewer loan with the Tennessee Municipal League (TML) has been approved under a new resolution by the Board of Mayor & Aldermen in Jasper.
During the meeting, Mayor Jason Turner explained the city joined a loan program back in 2004 alongside 15 other Tennessee communities, with the program dedicated to water and sewer line-based projects. He stated how originally the rate was variable depending on how many participants were willing to pay off expenses for the same loan pool. Over the years, however, the remaining 14 cities pulled out from the loan program in favor of fixed annual rates in payments, leaving Jasper as the sole city left within the program.
Mayor Turner stated TML has recently reached out and recommended the city to apply for a fixed rate with a local bank in the community, with the bank of choice being Citizens Tri-County Bank. By applying for a fixed rate through a local bank, the city would save $7,500 each year in payments, with $163,000 left owed towards the loan. City Recorder Paula Turney stated that the fixed rate will take effect by October once approved by the board. All paperwork for the rate under Citizens Tri-County has received additional approval from the state comptroller, with official motion to be made by the city council before the yearly rate takes effect.
The board has officially approved the resolution, with the city to now pay TML through a yearly fixed rate rather than a variable rate.