Woodstock refinances loan to cut its payments

By Alex Bridges

Woodstock can expect to save money each year by refinancing an old loan.

Town Council approved a resolution at its meeting Wednesday that allows officials to sign off on the recommendation to refinance a $2.47 million bond issued in 2007. The town used the money to pay for the trunk sewer line project that included improvements to the wastewater treatment plant and parts of the sewage system.

Woodstock also used the loan to refund and refinance a portion of a $2.5 million general obligation note taken out in 2005 for related costs.

Town Manager Reid Wodicka said Thursday that by refunding part of the 2007 general obligation bond, Woodstock should save about $220,000 over the remaining life of the loan or approximately $10,000 a year. Savings would equal about 8 percent.

The Virginia Resources Authority recently advised Woodstock officials that the town save money by taking this action and council members discussed the option at a Finance Committee meeting last month. Wodicka told council that the VRA holds its next bond sale in November.

In other business, council:

  • Approved a request by the police department to use money in its asset forfeiture fund to buy new winter coats for officers. The money comes from assets seized through collaborative operations with federal law enforcement agencies. The department plans to use $6,400 out of the $12,949.50 in the fund to buy 30 coats.
  • Adopted a new policy for the use and rental of the new events space at the W.O. Riley Park and other facilities. Wodicka said the town has had requests from groups and residents to use the events space but Woodstock lacked a policy governing the rental of the park facility. Council also updated the rental fees. Rates to rent shelters will increase from $20 to $25 per half day. The town will charge $100 to rent the events space.
  • Adopted on second reading an amendment to the town ordinance pertaining to utilities

Contact staff writer Alex Bridges at 540-465-5137 ext. 125, or abridges@nvdaily.com