JASPER, Tenn. — During his brief time in office, former Marion County Mayor David Kirk planned to save money by refinancing the county’s bonds.
Before he could see his initiative realized, though, Kirk died after a horse riding accident in November.
Interim Mayor Gene Hargis and other county leaders took up Kirk’s cause and completed the refinancing in December.
“We reissued the bonds,” Hargis said. “The total savings was just less than $1 million. That breaks down to about $75,000 per year in savings. We did not stretch the term [of the bonds], but we did greatly reduce the interest rate.”
County financial adviser Tom McAnulty, senior vice president of Stephens Inc. in Nashville, said the county owed roughly $13 million with a 4.95 percent interest rate. By issuing $13 million in new bonds at a 3.77 percent interest rate, the county was able to save more money, he said.
“It’s something that David started, and we followed through with,” Hargis said. “It saved the county a very substantial amount of money.”
New Mayor John Graham was involved in the bond refinancing and said he was proud of how everyone worked together to get Kirk’s idea accomplished.
Hargis said the county received an A1 credit rating during the negotiations, which means it has a strong ability to meet its financial commitment.
“It’s something that we’ve never had before,” he said. “We’ve never gotten that high. The last bonds the county sold got an A3 rating.”
An A3 rating suggests that unfavorable economic conditions are likely to weaken the agency’s capacity to repay its loans, officials said.
Hargis said the county’s Three-Star program, which targets key issues faced by the county and develops a comprehensive plan to address them, played a crucial role in getting the high credit rating.
“It was a concerted effort with all of us,” he said. “We put our heads together and did well.”
Ryan Lewis is based in Marion County. Contact him at ryanlewis34@gmail.com.