Supervisors from the towns of Ulster and Saugerties contend Ulster County Resource Recovery Agency officials are assuming too much about how municipal contracts should be handled.So here are my questions: How much is still owed on the principal of the original UCRRA deal? How, exactly, were the the ToU's annual payments affected by the refinancing? Did their payments go up? Did they go down? I assume the deal was refinanced in order to take advantage of historically low interest rates. So, if the rates were cut from, say, six percent down to two percent, this would cut interest rate payments on this deal by two-thirds. How much money is actually being paid out?
The disputes were brought Monday to the county Legislature’s special committee on the trash agency’s future.
[. . .]
Ulster Supervisor James Quigley contends the trash agency violated terms of a contract by extending from 2016 to 2025 the payoff date of bonds used to close the town landfill.
“We were in contract with the RRA as long as the original debt was outstanding,” he said. “When the debt was refinanced in 2002 ... (agency officials) unilaterally extended the town of Ulster’s obligation.”
Agency attorney Stephen Wing said he believes the change in bond payoff date keeps the town under contract through 2025.
The reason we need to know answers to these question is that the refinancing should be saving the taxpayers money, perhaps quite a bit of money. But the article doesn't mention this is all. Ask Quigley to show how this deal is costing residents of ToU more money. Pretty simple.
My guess is that the refinancing did the opposite and is saving money, and that Quigley is once again talking out of the lower portion of his anatomy and looking to score cheap political points in order to keep his name in the paper.
Maybe someone at the Freeman could ask Quigley these questions. My guess is you'll have to do a FOIL request because Quigley won't cooperate.