CANTON St. Lawrence County may pay less in fees and interest borrowing $12 million for next year than it did taking out a loan for $8.5 million in 2011.
The intention is in December to pay the retirement bill early, said Treasurer Kevin M. Felt.
By paying the pension bill to the state before the beginning of next year, the county receives a $66,000 discount. It would not have the cash to make the early payment without the money it is borrowing.
Without the pension discount, the cost of borrowing would be higher.
It cost the county $129,000 in fees and interest to borrow $8.5 million last year. However, the lender also provided a $33,000 premium which brought down the overall cost to $96,000.
Mr. Felt recommended this year the county borrow $12 million. Interest and fees will amount to more than $132,000 but a premium of $23,590 plus the $66,000 discount for paying the pension bill early will bring down the overall cost below last years, Mr. Felt said.
The decline in the amount of the premium paid to the county for borrowing could have been the result of a decrease in the countys bond rating, which was dropped last year because of the countys weakening financial position.
Quite possibly, Mr. Felt said.
Mr. Felt said he knew some legislators were wary of borrowing the extra money but he expected there would be several months next year when the additional cash would be needed to pay bills.