Farmingdale’s high bond rating leads to favorable interest rates
Last month, the Village of Farmingdale assumed a $4.75-million, 10-year bond to make improvements to its water infrastructure, repair its 18 miles of road and retire some of its existing debt.
“Standard & Poor’s gave us a bond rating of AA, the highest in the history of the village,” said Mayor Ralph Ekstrand. “[We are being charged] a 1.33 percent interest rate. It’s a ridiculously low rate. It’s like stealing money.”
Among the uses of the funds will be to put a booster system in the water distribution network. Right now, the citizens of the Lenox Hill Road area are in the highest elevation, approximately 150 feet above sea level, about the same height as the water tower. Occasionally, there is not enough pressure to maintain adequate flow.
At the September meeting of the board of trustees, the village gave its preliminary approval to Mocha, an Asian bistro, to occupy the 6,000-square-foot retail space at The Jefferson apartment complex by the railroad station. After what Ekstrand believes will be a routine approval by Nassau County Planning Department (since the restaurant is within 500 feet of a county road), the village will take its lead agency role and will give the necessary permits for Mocha to take its place among the many eateries that have made Farmingdale a dining destination.
The board also approved creating three “no parking” spots on Main Street where, after 11 p.m. on Fridays and Saturdays, taxis will be able to pick up fares without double parking, as is the case now.
Ekstrand noted that “a tremendous amount of people are taking the trains to the village,” but for those who choose to drive in, it has made available 350 spaces that normally serve as railroad parking slots.
Ekstrand also said that the village will create a 40-space parking lot exclusively for employees of Main Street dining establishments at Jackson Avenue and Melville Road. To avoid bothering the property owners whose backyards abut the lot, a 300-foot PVC fence will be put up.
Another resolution passed at the meeting was a home rule law that Ekstrand called “the double utility pole bill.” It will force utility companies to take down the extra pole that remains after companies erect a new one and transfer the wires.
“We have 12 double poles, some have been standing over three years,” said Ekstrand. “We’re going to crack down, and get them to take care of the pole within 30 days.”
Again, the county’s planning department has to sign off, which Ekstrand expects will happen soon, and the law might be approved at the next board meeting.
The Fine Print
According to a press release, Standard & Poor’s assigned its “AA” rating and “stable outlook” to Farmingdale Village’s series 2016 general obligation (GO) public improvement serial bonds and affirmed its “AA’ rating, with a stable outlook, on the village’s existing GO debt.
“The stable outlook reflects our expectation of continued economic stability and strong financial performance given management’s demonstrated willingness to make the necessary budget adjustments as a result of overall economic pressures,” said Standard & Poor’s credit analyst Timothy Daley. “Furthermore, we expect Farmingdale Village to maintain a moderate debt burden as its capital needs are limited.” Information released by Standard & Poor’s indicates that “An obligation rated ‘AA’ differs from the highest-rated obligations (AAA) only to a small degree. The obligor’s capacity to meet its financial commitment on the obligation is very strong.”
