The town of Halfmoon expects to save roughly $600,000 in future years by refinancing $7 million in outstanding debt to take advantage of low interest rates.
The Town Board on Wednesday approved a plan that consolidates four outstanding bond issues and refinances the debt at what is expected to be a much lower interest rate.
Because the bonds will be tax-free, the town should be able to get a new interest rate in the range of 2.08 percent annually, said Jeanine Rodgers Caruso, president of Fiscal Advisors & Marketing of Halfmoon, the town’s financial adviser. The most expensive existing debt has more than twice that interest rate.
Caruso estimated the future savings from refinancing three Halfmoon bond issues to be $409,552, and the savings from refinancing the Halfmoon portion of a library construction debt to be $197,234.
The bonds include municipal bonds issued between 1984 and 2006 and the town’s share of the 2005 financing of the Clifton Park-Halfmoon Library.
The loan maturity dates range from 2021 to 2033, depending on the maturity date of the original bonds, Caruso said — and the projected savings will be spread over that time.
Town Supervisor Kevin Tollisen called the projected savings a “win-win” for the town. He said the refinancing shows the continued effort of the Town Board to reduce spending and be fiscally responsible to the residents of Halfmoon, which nearly depleted its fund balance over the last few years to support municipal spending.
Also Wednesday, the board named Councilman Paul Hotaling as acting deputy town supervisor.
Councilman Walter Polak, who has been deputy supervisor, is currently hospitalized, Tollisen said. “We certainly wish him a speedy recovery, but we don’t know when he’ll be back,” Tollisen said.