MOSCOW - The borough's sewer authority will save an estimated $770,000 from refinancing its debt, which is largely tied to the expansion of Moscow's sewer treatment plant, the authority's chairman told borough council Monday.
James Kanavy said the interest rate will soon be finalized, but according to the most recent projections, the authority's debt from two loans will be reduced from $10,044,806 to $9,274,647.
Mr. Kanavy said refinancing the debt through Royal Bank of Canada reduces the interest rates the authority had been paying on two previous loans - 4.25 percent and 4.5 percent - to what was expected to be 3.51 percent as of May 15. The move also shortens the payback period by three years.
The debt is scheduled to be paid off at the end of 2043 and is being covered by revenue from $60 monthly user fees and $7,500-per-unit tapping fees.
Most of the debt is tied to the $5.9 million project to expand Moscow's sewer treatment facility's capacity at a time when the system could not accommodate any more connections.
The 18-month project wrapped up in the summer of 2009 and increased the plant's daily capacity from 180,000 to 300,000 gallons, allowing for 600 new connections.
Borough council unanimously agreed to be the debtor of last resort to pave the way for the loan to be refinanced.
Also at Monday's meeting:
-âCouncil agreed to credit two full-time employees for their service before the borough implemented a pension plan for nonuniformed employees.
-âSecretary/Treasurer Constance Sanko said the borough has applied for a state grant that could cover 90 percent of the cost of replacing the borough's recycling truck.
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