The Danbury City Council has agreed to refinance and consolidate the debt of the Richter Park Authority.
The proposal was brought to Danbury in an effort to help put Richter in a better financial position in the short and long term. They have loans with Newtown Savings Bank at approximately 6-percent, pump station deeds and working capital. The package from the City would consolidate $1.15 million at approximately 2.5-percent.
Danbury Finance Director David St. Hilaire says the City is essentially becoming the banker for the Richter Park Authority so they don't have to incur a higher rate from a lending institution. He says the City will get a better return on investment with that 2.5-percent than if the City invested this money anywhere else.
This package would save the Richter Park Authority about $60,000 a year, which will help with the pump station that failed recently, as well as allow some working capital which is needed in light of the recent difficult winter.
Outstanding notes would be paid off, and a $350,000 loan would be made for the pump station and working capital fund. The fund is to help the Richter Park Authority during the winter when they don't take in revenue from golf fees.