CANTON -- The Village of Canton is receiving the benefit of $3,505,000 in refinancing of the original bonds that funded water and sewer projects.
New York State Environmental Facilities Corporation estimates that $255,200 in what they call "present value savings" will be realized by the refinancing of the bonds for Canton.
Canton is one of 140 communities statewide, and the only one in St. Lawrence County, to receive the benefit.
The refunding bond sale, which closes today, is designed to help borrowers who participated in earlier project financings through EFC and received a 50 percent interest rate subsidy for Clean Water projects and a 33.3 percent interest rate subsidy for Drinking Water projects.
By using bond proceeds that are supplemented by other SRF funds to provide leveraged loans, EFC is also able to offer two or three times as much capital for water quality protection projects. These EFC tax-exempt bonds are rated triple-A by all three bond rating agencies, enabling EFC to obtain much lower interest rates than if its borrowers sold their own bonds.