GRANVILLE — Using a baseball analogy, the Granville Village Board was told they were about to complete the third step in the four-step process to secure financing for the much-needed project to improve McCoy Street.
“You’re rounding third base, I’m happy to report,” John Vezzetti, of Bernardi Securities said during the Jan. 2 Granville Village Board meeting.
Vezzetti was in attendance to help board members discuss their approved ordinance to issue two General Obligation Bonds that won’t exceed $1.4 million.
One of the two bonds issued will provide the village with $700,000 for the McCoy Street project. The other bond will be a General Obligation Refunding Bond, which will be used to refinance existing debt at a lower interest rate.
“The next step will be to visit with Standard & Poor’s, they’re the rating agency, on Jan. 11. This conference call will establish the first-ever credit rating for the Village of Granville,” Vezzetti said.
He added that after reviewing the village’s financial information, he expected the village to receive an “A” rating, which would result in being able to obtain a lower interest rate that could result in significant savings over the life of the bonds.
Vezzetti said at a previous meeting that the village is currently paying 4 percent on the existing debt, and he’s hoping to get the new rate at 3.25 percent or lower, which could save $25,000 to $40,000, depending on where the interest rates fall.
“It will be same terms and same payment rates, but just exchanging the interest rate,” he said.
To obtain the rating will cost $9,500, but Vezzetti said it will be worth the expense, and that the amount was expected from the beginning and was also factored into the bond amounts. The village is expected to have the funds in early February and in time for this year’s tax levy.
The refunding bond will have a life of 13 years and will be paid off in 2031. The McCoy Street bond will last for 20 years and will be paid in full in 2037.
In other board news:
The board approved the yearly resolution to extend the abatement of taxes regarding certain property located within the Bureau-Putnam Enterprise Zone.
Village President Jared Baker informed the board a local resident was interested in purchasing the recently closed Pagan O’Leary’s pub, but that an ordinance would be needed before the new owner could obtain a liquor license.
The board is expected to approve the new ordinance at the next village board meeting scheduled for 6:30 p.m. Jan. 16.