The Town of Tonawanda is borrowing $5.1 million in serial bonds to finance 11 improvement projects -- from reconstruction of the Kenmore swimming pools to the Sheridan Golf Course's irrigation system.
The town's $500,000 contribution to the $1.5 million Vulcan Street reconstruction and the $90,000 Expressway Baseball Diamonds' parking lot construction are the two new projects being funded through serial bonding.
The other nine projects have already been completed but were initially financed through the short-term bonded anticipation note.
The town is borrowing the serial bonds at an interest rate of 3.47 percent. Town Supervisor Ronald H. Moline said it's the lowest rate that the town has seen in 40 years and it's indicative of the town's sound borrowing history.
"The bonds are being borrowed at a low interest rate because we don't borrow very often, so we have exhausted a very small percent of our debt service," Moline said.
He added that the town's direct debt burden is 0.4 percent of full value, and the town's debt service payments account for a modest 3.4 percent of expenditures.
The serial bonds for the various projects have different maturation schedules. For example, the serial bonds for $50,000 parking lot improvement for the Aquatic and Fitness Center spans two years and $900,000 improvements to the Water Treatment Plant, which included new equipment, windows and doors for the facility, will last 14 years.