St. J. Saves $34k with Loan Payoff

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Created on Tuesday, 27 March 2018 16:26
Written by Matthew Seaver

STJ Loan PayoffST. JOHNSBURY - The town of Saint Johnsbury will be paying off a decade's old loan resulting in a savings of over $34-thousand in interest.

The USDA Rural Development loan was used for the construction of the wastewater treatment plant during the 1990's. The loans payments were originally spaced out to be fully repaid by the year 2036.

 

On Monday night, Town Manager Chad Whitehead asked that the select-board allow for the remaining $76.5-thousand be paid off with money from the sewer fund. "The sewer fund actually is doing pretty well, it's a pretty healthy fund. So there's reserve funds that we can utilize in that. It'll affect our cash flow, but not substantially, and nothing that we can't cover. So we'll pay that off and we'll start realizing savings over the years." Said Whitehead.

The board had concerns of early payment fees, but Whitehead explained that there would be none and that the town would be able to save a little over $34-thousand dollars in interest payments if the loan were paid off now.

In a unanimous decision, the board voted to use the money from the sewer fund to pay off the loan with a savings of over $34-thousand.