MOUNT VERNON — Knox County Commissioners on Monday approved a resolution that clears the way for Knox Community Hospital to pay off two bond issues.
Technically, the resolution passed by the commissioners terminates leases entered between the hospital and the county when the county agreed to issued tax-exempt revenue bonds for the hospital in 1998 and 2004. The hospital will pay off the 1998 bond issue which refinanced debt from the initial construction of the hospital.
The 2004 bonds, issued for an expansion at the hospital, will be refinanced under a Department of Housing and Urban Development program that provides a lower interest rate than the hospital had been paying.
Commissioner Allen Stockberger explained that no county funds were used in the process and the bonds did not affect the county’s debt limit or its credit rating.