Zero-Interest Loan to Save in Mburgh - Sewer Customers to Save 5,000 Over 30 Years

MIDDLEBURGH - Middleburgh village officials were able to secure a zero-interest loan to pay for sewer upgrades that will end up lowering sewer bills for users.

Mayor Tim Knight signed the $2.6 million zero-interest loan on Tuesday.

"As part of the Village of Middleburgh’s $5.6 million project to rebuild its sewer facility, we were able to secure approximately $3 million in state and federal grants to offset the cost to our residents; the remaining $2.6 million, however, had to be bonded to make up the difference," Mayor Knight explained.

The difference between the cost of a low-interest and zero-interest loan is immense over the  life of the loan, he added.

"When interest was factored in over 37 years, that $2.6 million became $3.8 million," Mayor Knight said.

To reduce that cost, Mayor Knight said, "Over the past two years, Village Clerk Laraway and myself have been working diligently with the United States Department of Agriculture (USDA) and the New York State Environmental Facilities Corporation (EFC) to refinance that $2.6 million bond with zero percent interest."

On Tuesday, he formally signed the paperwork to close out this zero percent interest deal.

Mayor Knight said this has three immediate consequences for residents:

* $1.2 million in interest payments have been completely eliminated, which roughly equals to $5,000 saved per household connected to the sewer system over the next 30 years.  

* The length of the debt service was reduced from 37 years to 30 years, which more accurately aligns with the expected life of the new sewer infrastructure than before.

* Instead of sewer rates increasing substantially to $217.51 per quarter next year for customers, they will actually decrease slightly come February 2026 to $191.80 per quarter.

Mayor Knight added, "I am incredibly proud of this accomplishment. There are many thanks to go around, including our friends at USDA and EFC, our Village Board for supporting this effort, our Bond Attorneys at Hodgson Russ, our Village Attorney Fred Mauhs, and our Village Clerk Melanie Laraway."