Glenville to save funds by refinancing debt

PHOTOGRAPHER: Michael Goot

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Glenville will save about $600,000 over 16 years after refinancing its outstanding bonds at a lower interest rate.

The town took out $4.9 million worth of bonds in 2002 for land acquisition, extension of a water district and closure of the landfill. It still has $3.36 million worth of outstanding debt.

Interest rates had previously been about 5 percent but have been plummeting below 3 percent, so town officials decided to refinance the bonds.

During the process, Moody’s Investors Service reviewed Glenville’s finances and upgraded its credit rating from A1 to Aa3, which is the fourth-highest rating on the scale and in the “strong” category.

The investment agency said the town has been following conservative budgeting practices, has a growing tax base with additional residential and commercial construction and has reduced its use of its surplus to balance the budget.

Supervisor Chris Koetzle said the town will be locking in an interest rate of 2.5 percent, which will save a total of $611,000 over the remaining years of the bond and about $37,000 in 2013. About 87 percent of bond payments come from the water fund and the rest in the general fund.

Koetzle praised the efforts of the town’s employees and volunteers in helping to increase the bond rating.

“The work you’ve done over the last 21⁄2 years has been noticed, has been important, has been appreciated,” he said.

In other business, the town is switching to GTM Payroll Services as its payroll vendor at a cost of $4,595. This is a couple thousand dollars less than what the town had been paying.

Also, the town ratified a one-year contract with the Animal Protective Foundation to house the town’s loose dogs at a cost of $60 a dog.

Koetzle said the previous agreement had expired on Dec. 31 of last year. The town has been working with APF to tweak the language as the nonprofit organization has been standardizing its contracts with various municipalities.