Huntington board approves refinancing

After what some town leaders termed a partisan delay that could have jeopardized town finances, the Huntington town board has unanimously voted to refinance $24 million in bonds to achieve a lower interest rate.

The vote on the measure -- taken at a board meeting Tuesday -- had been delayed for two weeks because town board members Mark Mayoka and Gene Cook failed to offer a required fourth vote to pass it at the May 8 town board meeting. Mayoka, a Republican, and Cook, an Independent, said they needed more details on the refinancing.

At the time, Town Supervisor Frank P. Petrone and board members Mark Cuthbertson and Susan A. Berland, all Democrats, charged that Mayoka's and Cook's actions "jeopardized the town's financial health by failing to vote on a resolution that would save residents $700,000."

But Mayoka, a certified public accountant, said the delay allowed time for more research that found it possible for an additional $300,000 in savings.

"The original language of the resolution did not change," Mayoka said. "But the plan to execute the refinancing has changed."

He said those additional savings could come from re-evaluating the cost of issuance, underwriters discount, market conditions and other bonding options.

Petrone said the savings are estimates.

"The original resolution always provided for variations and change," he said. "Depending on the date that you refinance there could be a change in our interest rate and that change would reflect costs as well, that all reflects what your savings is."

The refinancing was recommended by New York Municipal Advisors Corp., the town's fiscal adviser for bonding issues. NYMAC projected the refinancing would save taxpayers $100,000 a year for the remainder of the life of the bonds, or more than $700,000 overall.

The bonds were issued from 2002 to 2005. In 2009, NYMAC recommended a similar refinancing of $13 million of other town debt, saving taxpayers about $700,000.

Cook said an extra two weeks to protect taxpayer money was time well spent.

"It's $24 million," Cook said. "It's our fiduciary duty to do the best we can for the people."