The Town of Huntington has refinanced $22.6 million in debt, which it says will save more than $2 million in interest costs over the next seven years.
The bonds sold at an interest rate of 0.92 percent. That represents about three-quarters less than the average original interest on bonds that were issued between 2002 and 2005, a statement from the town said.
The $2.029 million savings is three times what had been projected when the town board approved the refinancing in May. The term of the bonds remains unchanged.
“These savings are a direct result of the hard work keeping the Town’s fiscal affairs in order to preserve the AAA bond rating and of the invaluable advice and expertise provided by our bond counsel and fiscal adviser for bonding issues,” Supervisor Frank Petrone said in a statement. “In particular, I would like to thank Bob Kerr at New York Municipal Advisors Corp. for helping arrange and time the sale to achieve the maximum savings.”
In 2009, the New York Municipal Advisors Corp. recommended a similar refinancing of $13 million of other town debt that saved taxpayers about $700,000, the town said.