HENDERSON The town will save about $650,000 after it received a refinancing of its construction costs connected to a pair of water infrastructure projects.
Supervisor Raymond A. Walker said the savings could lead to reductions in the quarterly bills of Water District 2 residents, depending on how much the districts reserves develop this year.
Probably at the end of this year, were going to be able to reduce the rates drastically, he said. Mr. Walker said the rate would be discussed further by the Town Council.
The 30-year, no-interest loan, valued at $1.3 million, was announced by the state Environmental Facilities Corp. on Thursday afternoon. The loan is tied to the construction of a new water distribution system and upgrades to its water treatment plant, both completed in June 2010.
The EFC release said the loan will allow the town to avoid issuing its own long-term debt for the project. The financing was made available through the state Department of Healths New York Drinking Water State Revolving Fund.
The statement said the town qualified for hardship financing as a disadvantaged community, opening up the direct grant and interest-free loan.
In a statement, Matthew J. Driscoll, the corporations president and CEO, said the refinancing would help the town bring residents high-quality water for affordable prices.
State Health Commissioner Nirav R. Shah said in the statement that investing in water system improvements was critical to protecting public health.
According to the EFC, the Clean Water and Drinking Water state revolving funds have provided more than $15 billion in financing and grants since 1990. In 2012, the corporation reportedly issued $1.05 billion in bonds for financing of water projects, creating savings of more than $260 million.