Bids for a new Jasper Middle School have come in almost $9 million higher than expected and higher than the amount already secured for the project, leaving Marion County, Tennessee, leaders searching for ways to fund the essentials.
Early this year, the county sold $25 million in bonds to fund the new school when interest rates were much lower and school system leaders estimated the cost to be that amount or less, Marion County Mayor David Jackson said Tuesday in a phone interview. The interest rate on that portion was 1.73%, he said.
The economy and inflation can be blamed for driving up bid prices and forcing the current review for savings, Jackson said. Fortunately, the county’s bond rating is good enough to get another loan to cover additional costs without increasing property taxes, he said.
“I think we can avoid that. We do have the ability to borrow some more money through rural debt service,” he said, referring to U.S. Department of Agriculture funding available through the state. “The reason we’re able to borrow extra money is because we’re financially strong and we’ve got a double-A bond rating,” he said.
(READ MORE: Tennessee approves new Marion County virtual school, 28 others in state)
