VALATIE – The Village Board met last week in a special meeting to approve refinancing an outstanding $1.3-million loan.
Thursday evening, February 23 the board unanimously approved working with Financial Advisors at a fee of $7,800 to reissue the bonds for the loan, which paid for water tower and drainage work finished several years ago.
The loan, to be paid over 25 years, currently carries a 4.75% percent interest rate that includes a yearly audit fee of $12,000 required by the federal government.
“That makes a very expensive loan,” said Mayor Gary Strevell at the meeting.
Acting Village Clerk Jason Nastke, who was mayor of the village during the water tower project, did the research in refinancing the loan. “There is no reason we can’t be under 3%,” he said of interest rates.
“We are going to explore every option,” Mr. Nastke told the board, which met at Barnwell Nursing and Rehabilitation Center right after a neighborhood watch meeting hosted by the village and the Town of Kinderhook.
“Frankly we should do what’s the least cost to the village,” Mayor Strevell said of the refinancing effort.
The board also reworked the wording the village contract with Delaware Engineering as it moves forward with more water and sewer upgrades. The board received a $3.2-million loan at 0% interest from the state Environmental Facilities Corporation (EFC) for a major sewer plant upgrade, which should go out for bids soon, said the mayor.
The next regular board meeting will be Tuesday, March 12 at 7:30 p.m. in the Village Hall.