Refinancing of Massena Community Center could save village $210000 - NNY360

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MASSENA — Village of Massena officials are refinancing the remainder of their debt for the Massena Community Center project, a move that Treasurer Kevin Felt said could save them a significant amount of money.

“I’m trying to look for any low-hanging fruit that’s out there to save money,” he told trustees. “One of the things I’ve had my eye on is this community center bond that’s been out there since 2007. The interest rate back than was about 4.125 percent. I kept thinking that in today’s numbers that was pretty high.”

The current bonds are outstanding in the amount of $1.1 million, maturing on March 15 annually from 2021 to 2036. He said that, after some research, he learned that there was no obligation to “see it all the way through” with the current financing.

“So, if you wanted to refinance it, we could go back out to the market and refinance it and just pay off this bond,” Mr. Felt said.

He said they may be able to take advantage of an interest rate of about 1.75 percent if they refinanced.

“We won’t know until we go out on the market to do this,” he said.

Mr. Felt said he looked at two scenarios — what the financial impact would be if they shortened the payments to 10 years instead of 15, and what they would be if they refinanced for 15 years. He said the 10-year payment schedule was likely to increase the debt payment by about $31,000 annually.

Trustees chose to keep a 15-year payment with the possibility of a 1.7 percent interest rate, which would provide about $210,000 in savings over the 15 years. Mr. Felt said they were looking at an annual savings of anywhere from $10,000 to $13,000.

“It seems like a no-brainer to save $210,000 over the next 15 years,” he said.

The Massena Community Center, which is located at 61 Beach St., is operated by the village and town of Massena and is overseen by the village’s superintendent of public works. Among the organizations that call the facility home are the Massena Senior Citizens and Massena Neighborhood Center.

It has two rooms that can be reserved for public use — the “Community Room,” which has a capacity of 265 individuals, and the “Meeting Room,” which has a capacity of 30 individuals.

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Refinancing of Massena Community Center could save village $210000 - NNY360
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