Governor Kathy Hochul today announced the Environmental Facilities Corporation Board of Directors approved $78 million in financial assistance for water infrastructure improvement projects in the Capital Region, Finger Lakes, New York City, North Country, Southern Tier and Western New York regions. These investments will help communities large and small undertake projects that are vital to public health, quality of life, economic development and environmental protection. Of regional interest:
Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings
The Board also took action to help ensure continued, long-term affordability of existing projects. This includes approving an $847 million bond sale to refinance various wastewater and drinking water projects and refunding prior bonds issued for the New York City Municipal Water Finance Authority (NYCMWFA). Refunding bonds delivers additional savings for New York City ratepayers by refinancing the original bonds that funded their projects at an even lower interest rate. The transaction is estimated to save $149 million for New York City ratepayers over the next 30 years.
In addition to the bond sale on behalf of New York City, the Board approved $10 million in long-term interest-free financing for three existing projects in the Village of Lake Placid in Essex County (North Country), the Village of Sherman in Chautauqua County (Western NY) and the Town of Woodhall in Steuben County (Southern Tier). Short-term financing provides capital for design and construction of projects. Once project construction is completed, the short-term financing is typically refinanced to long-term financing for up to 30 years, saving municipalities significant interest expenses versus financing on their own.
Based on current market conditions, these long-term interest-free financings are projected to save ratepayers an estimated $15 million in interest payments over the life of the financings.
Drinking Water Projects:
Village of Portville in Cattaraugus County (Western NY) – $1,622,559 short-term interest-free financing and $785,971 grant from BIL general supplemental funds, as well as a $3,000,000 WIIA grant for improvements to well sources and treatment buildings; chlorine treatment and fluoridation treatment system processes and the north storage tank; replacement of the south storage tank reservoir, aged and undersized watermains, valves and hydrants; and installation of telemetry and new water meters.
