The Osceola Village Board August 13 extended the term of a promissory note issued in 2017. The original $900,000 general obligation note was used to purchase property at 657 State Highway 35, now the grounds of the fire department.
The note was extended earlier this year to give the village time to structure the debt with other long-term financing. However, the village is planning on refinancing much of its general obligation debt in September and October.
“If we didn’t do this we would have to go out and get a loan and pay this particular note,” said Interim Administrator Frank Pascarella.
The timing will likely benefit the village, as the Federal Reserve cut interest rates July 31 for the first time in more than a decade.
“With interest rates being what they are, we’re looking at bund-ling a number of GO bonds into one bond, so it will be easier to make payments and reduce our debt,” Pascarella said.
The village will also use the promissory note to assist with a $150,000 payment to construction firm Market and Johnson. The payment was also approved August 13.
The balance of the note is currently $720,000. The board approved an extension of the term to December 31, 2019.