The Knoxville City Council met in a special session Tuesday night to award a bond sale. 

The sale was held Tuesday morning in which there was one bid and the meeting was held Tuesday night to approve the sale. The only agenda item for the special session was authorizing and approving a loan agreement, providing for the sale and issuance of general obligation corporate purpose ponds, Series 2026, and providing for the levy of taxes to pay the same. The $17.8 million in bonds will pay for the new public safety/city hall building and the next two years of the street improvements project.

The bonds were purchased by Robert W Baird with 30 different banks and they will mature over 20 years with all of them being paid for by local option sales tax. The interest rate on the bonds was 4.11% which was under the estimate. The City will pay $300,000 less than originally expected. The City will now be at 94% of their debt capacity but will see a reduction down to roughly 75% in 18 months due to the retirement of other debt. 

The new public/safety city hall building will break ground on April 7th and the City will also use $1 Million in cash for the project.