The City of Clarence-Rockland has a debt of about $4.3 million remaining on a bank loan for construction of the Clarence-Rockland Arena. The term of the loan is up for renewal this year and the city’s finance department proposed a method for reducing the amount of money owed to the bank for quicker repayment of the loan.
The department recommended the city “borrow” about $2.5 million from itself and apply that to the outstanding loan balance. That would leave about $1.9 million left to pay off over a shorter period to the bank than originally planned.
The city would repay its own internal loan at the same interest rate as the bank loan. The repayments for the internal loan would be done through annual municipal allocations for debt payments. The plan would also improve the city’s municipal debt capacity.
Council approved the proposal.