The Jonesborough Board of Mayor and Aldermen on Monday authorized a refinancing agreement and a corresponding bond issue projected to save the town more than $1.4 million on nearly $5.4 million in Rural Development loans for water and sewer improvements that date back to 2001.
With the current lower interest rates and the town’s improved credit standing, the agreement is expected to both decrease the amount of payments on three existing Rural Development loans and to shorten the term over which the loans will be repaid by six years.
The new agreement will reduce the interest rate on the debt from between 4 3/8 and 5 1/8 percent to an average of 3 1/3 percent over the next 27 years while reducing the town’s payments from more than $311,000 annually to between $302,833 and $307,298 a year.
On the recommendation of town attorney James Wheeler and town Recorder Abbey Miller, the board approved the agreement in a vote of 3 to 0 with alderman Terry Countermine absent.
In other business on a busy monthly meeting agenda, the board likewise approved in consecutive votes of 3 to 0 resolutions to:
n Install Countermine as vice major of Jonesborough, a new appointed office Mayor Kelly Wolfe said is stipulated by recent changes in the town’s charter.
n Approve on final reading an ordinance that will allow beer consumption at town-sponsored events under specific conditions, including limiting beer consumption to a restricted area in order to maintain a family atmosphere for festivals and special events beginning with this year’s Jonesborough Days celebration.
n To pursue the sale of a tract of land located at the northern end of Boone Street and Andrew Jackson Boulevard to Mountain Empire Oil in order to allow the company to demolish and rebuild the neighboring Shell station to include a new Dunkin Donuts shop.
n To enter an agreement with developer Brian King to extend water and sewer lines to undeveloped areas of The Meadows subdivision on the north side of Andrew Jackson Boulevard at New Boones Creek Road in exchange for King’s transfer of open spaces in the subdivision to the town needed for development of a walking trail and to provide a 75-foot right of way for future development of the northern connector road to US Highway 11E.