Officials use blacktop savings to reduce debt

TOWN OF ULSTER, N.Y. » Town Board members have approved putting $57,519.98 in unspent 2017 money for blacktop into the 2018 highway budget line to pay down debt.

The funding shift was approved at a meeting Thursday, when Supervisor James Quigley said the reallocation gives the 2018 budget an early boost toward reducing debt service.

“The budget line for blacktop was underspent,” he said.

Officials had budgeted $230,000 for blacktop in 2017, but the department spent only $172,480.02.

“We’re taking that ... plus some other money and paying the debt service that’s budgeted for next year,” Quigley said. “So we’re paying it a year in advance. It’s like paying a month in advance on your car loan.”

The bond was taken out in 2016 to refinance debt that was used for highway equipment purchased in 2009. The bond, which has an interest rate of 1.5 percent, carries annual payments of $76,150.

Quigley said savings from prepaying will be added to the existing budget line for blacktop in 2018.

Quigley said the board vote was important to help keep the town on track with financial planning.

“It’s very helpful because, if you don’t spend the money in the current year, it goes into the highway unappropriated fund balance and it could be used for anything next year,” he said. “This way, we’re dedicating it specifically to blacktop.”