FORESTVILLE – The Forestville Village Board agreed Tuesday to make a payment on a $250,000 bond anticipation note. The board authorized a $6,000 interest and principal payment.
The bond anticipation notes were authorized to tear down a building at 15 Main St. in 2009. The payment of $3,000 in interest and $3,000 in principal was authorized after an executive session to discuss litigation on the issue.
The five-year notes were dated Nov. 1, 2009, and issued at 1.7 percent. The Village Board members in 2009 authorized the notes, which have been automatically renewing with Evans Bank. A payoff on the note would be required next year. This amount could put a huge burden on village taxpayers, who currently support a total budget of only about $104,000 annually.
Village Attorney Michael Sullivan said that by law the money cannot be borrowed for more than five years. “You are going to have to budget that amount for next year,” he said.
“You may require special legislation from the State of New York, but it is not going to come soon enough for you to not include it in your budget,” Sullivan said.
He encouraged Village Board members to start working with county officials to see if there could be any help to pay for the bonds. He said he would help with looking into ways to spread out the payment of the quarter-million dollars worth of notes.