After receiving a $500,000 state grant, the county has to come up with the $800,000 balance to purchase the new equipment. The county had two options: take out a loan from First-Knox National Bank at a rate of 1.97 percent or take out an internal loan with county funds. Knox County Auditor Jonette Curry told the county commissioners Thursday morning that, after consulting with Knox County Treasurer Shelly Coon, the internal loan is possible.
The county has a $1 million investment set to mature. The county will reinvest the money in the form of a loan to Knox County 9-1-1 at an interest rate between 1 percent and 1.25 percent. That is a higher rate than the investment that is set to mature, which benefits the county’s investment fund, and lower than the First-Knox interest rate, which benefits Knox County 9-1-1.
Curry said it will be an eight-year loan with the anticipation that it could be paid off early. Knox County 9-1-1 will make a yearly payment plus interest; the loan will then be renewed and recalculated based on the new principal amount. The initial closing date will be July 14.
Richard Dzik, director of Knox County 9-1-1, said his department will soon be paying off another equipment loan, so the MARCS loan will essentially replace the current loan in terms of the 9-1-1 budget.
The commissioners also met with Steve Lemons on Thursday regarding law enforcement in the county. Lemons said there was a serious public relations problem with law enforcement, citing issues with obstruction of justice and abuse of power as examples. Because the commissioners do not have authority over law enforcement, they encouraged Lemons to take his concerns to Sheriff David Shaffer and Police Chief Roger Monroe.