Glenville's strong credit rating saves bond finance costs
GLENVILLE Glenville will save some more money on bond refinancing after it locked in a better-than-expected interest rate.
The town is refinancing $6.9 million worth of debt it incurred from a bond it took out in 2005, mostly for water infrastructure projects.
Town officials anticipated saving about $462,000 but instead it will save roughly $556,000 — about $45,000 per year — because it was able to obtain an interest rate of 2.1 percent. The current rate is 4 percent.
The refinancing was prompted by Moody’s Investors Service upgrading the town’s credit rating last April by one rank from A1 to Aa3, which is the fourth-highest rating on the firm’s scale and in the “strong” category.
Supervisor Chris Koetzle said Moody’s recently reaffirmed that rating and said Glenville’s financial outlook was positive.
This new refinancing is on top of the $513,000 the town will save after it refinanced a previous set of bonds last year — adding up to more than $1 million.
“That’s significant savings for the town,” he said.
The Town Board on Wednesday gave the supervisor the official authorization to lock in the new rate.
In other business:
* The board formally passed its resolution encouraging repeal of most of the NY SAFE Act.
Sportsmen and other gun rights advocates urged the board last week to back the movement to get rid of the law that bans the sale of assault-style weapons, caps the number of rounds a magazine can hold at seven, and requires private gun sellers to conduct background checks on prospective buyers.
The resolution urges support for a bill proposed by state Sen. Kathy Marcione, R-Halfmoon, which would repeal most of the law except for provisions enacting enhanced penalties for people who use illegal weapons when committing crimes; providing longer periods of treatment for people with severe mental disorders; and allocating funding for school safety plans.
Six people spoke in favor of the resolution during the public comment section of the meeting including Tom Bovino, who said the issue is gun rights but it could it could easily be about freedom of speech or freedom of assembly. “Every one of us has a God-given right to protect our family, protect our property and protect ourselves,” he said.
Eric Tucker criticized the law for demonizing people with mental health issues.
“We should be nurturing these people and getting them to treat these things,” he said.
* The board voted to purchase a new front-end loader a cost of $159,000. Public Works Commissioner Tom Coppola said the town’s current 2005 John Deere loader needs new tires, rims and a cab, which would cost $32,000 total.
This is one of the town’s most used pieces of equipment and is needed in salting operations, road construction, leaf composting and other operations, according to Coppola.
Councilwoman Gina Wierzbowski said the town can get $63,000 from trading in its current equipment and pay cash for the balance because it has some surplus funds.
“It will also help to implement our plan to replace things before their trade-in value is completely gone,” she said.