Hempstead Town votes to refinance about $32 million in bonds

Hempstead Town Board members voted to refinance more than $31 million in bonds, which is expected to save taxpayers $1.4 million.

The town board unanimously approved the bond refinance at current interest rates after five of the six board members rejected a similar proposal by Supervisor Laura Gillen.

Board members on Feb. 20 authorized the town comptroller to refinance up to $32 million in bonds at the current interest rate before it is increased by the Federal Reserve. The bonds, which covered capital spending projects since 2007, are set to mature in May.

The bonds carry an original rate of between 4 to 5 percent and the new refinanced bond rates would range from 1.6 to 3.7 percent, town officials said.

Gillen had requested on Feb. 6 to refinance the same amount in bonds but with a threshold of $110 million. She said she proposed a higher threshold to give the comptroller the option to refinance more debt if necessary. She said her proposal would have saved $2.8 million over 20 years.

“As the chief executive and financial officer of the Town of Hempstead, it is my responsibility to look out for the financial future of our residents,” Gillen said in a Feb. 6 statement.

Erin King Sweeney, joined by fellow Republicans Anthony D’Esposito, Edward Ambrosino and Dennis Dunne, as well as the board’s lone Democrat Dorothy Goosby, issued a statement disputing Gillen’s original proposal.

“I’m not sure where the administration got their crystal ball to determine the cost benefit of refinancing more than a year from now, but we are basing our votes on actual fact,” D’Esposito said.

Board members asked to postpone the initial vote on the refinancing proposal to give the town comptroller further information after the Feb. 6 meeting. Board members said Comptroller Kevin Conroy recommended refinancing $31.4 million in bonds that are refundable in May with the most accurate interest rates.

“Just as we cannot predict weather conditions a year away, knowing market conditions so far ahead is impossible,” King Sweeney said.

Hempstead Town spokesman Mike Fricchione said he was happy the board supported Gillen’s bond refinancing proposal, “thus saving taxpayers millions of dollars, and we look forward to the same support and cooperation on the Supervisor’s future cost-saving proposals.”

By John Asbury

john.asbury@newsday.comJohnAsbury

John Asbury is a breaking news and general assignment reporter. He has been with Newsday since 2014 and previously worked at The Press-Enterprise in Riverside, California.