2% Interest
10:13 pm
Tue June 25, 2013

Lee County to Borrow Local

Lee County will stay local when it comes to getting money for some upcoming projects.

Lee County Board of Supervisors

The Board of Supervisors has accepted Pilot Grove Savings Bank’s offer to purchase $650,000 in bonds.

The bank offered the county a 2% interest rate over ten years.

Chairman Rick Larkin says the board appreciates the opportunity to keep this local, in particular because if there is a problem, it can be addressed quickly.

The county is borrowing the money to add more female cells and more medium security cells to the jail along with some sewer work.

It will have to pay about $720,000 over the life of the loan. 

The bond issue is expected to increase the county’s property tax rate by about six cents per year.

The loan can be paid off, though, without penalty after five years.

The money should be available in less than four weeks.  Portions of the jail expansion project are expected to go out for bid next month.

The county will save about $500/year because it decided to have the County Auditor make the payments as opposed to a separate agency.