NASHVILLE (WATE) - Officials announced a bond deal Wednesday that will save the state of Tennessee $27.8 million and help finance construction projects at colleges and universities.
Part of the savings was achieved because Tennessee State School Bond Authority officials decided to eliminate the reserve fund that was included on previous bond issues.
TSSBA also took advantage of its strong credit rating and good market conditions to get the lowest interest rates in its history, which will result in additional savings over time.
The bonds aren't general obligation bonds that will be repaid with taxpayer dollars, according to a press release. Instead, they will be repaid with revenues, such as parking and dormitory fees, that are generated by the projects being financed.
"I applaud the hard work and creativity of our staffs in closing this bond deal," said state Comptroller Justin Wilson, the authority's secretary. "They found a way to finance key education projects while achieving substantial savings on the deal's costs."
"We're focused on providing great customer service at the lowest price to Tennessee taxpayers," Gov. Bill Haslam said. "These are important projects to our higher education institutions, and managing the state conservatively and having a strong credit rating were important pieces to receiving low rates that save Tennesseans money now and in the long term."
The members of the bond authority are: Gov. Haslam, Comptroller Wilson, Secretary of State Tre Hargett, Treasurer David H. Lillard, Jr., Finance and Administration Commissioner Mark Emkes, Board of Regents Chancellor John Morgan and University of Tennessee President Joe DiPietro.
