The Village of Lindenhurst at Tuesday night’s board meeting authorized the refinancing of $2.5 million in bonds.
The bonds were taken out between 2001 and 2004 and were used to finance a multitude of projects, from roadway improvements to land acquisitions, said Shawn Cullinane, village administrator clerk-treasurer. The village still owes $2.1 million in principal on those bonds, he said.
Cullinane said the village hopes to take advantage of low interest rates now available. Currently, Lindenhurst is paying between 3.5 percent and 4.75 percent, he said. With the refinancing, officials hope to bring those rates down to between 1.5 percent to 2 percent, he said.
Village officials announced in June they plan to bond for $6 million to replace the deteriorating firehouse on Wellwood Avenue. The village estimated a “worst-case scenario” interest rate of 4 percent, resulting in an additional $39.70 charge on annual resident tax bills. Cullinane said the refinancing will give the village “some headroom” and possibly reduce that tax burden.