BY STACI WILSON

New Milford Municipal Authority’s plan to refinance the 10-year-old sewer line loan will save residents about $2.5 million.

Donald Button, chairman of the municipal authority, said refinancing the $3.3 million at this time would cut the interest rate in half.

The refinancing won’t extend the length of time remaining on the loan. The current loan, taken out a decade ago, was a 40-year loan. Button said the new loan would be set-up for 30 years.

Refinancing would also amount to savings on sewer bills, Button said.

Council members were pleased by that news. Councilman Rick Ainey said that in the community surveys received by the borough, “The number one complaint was the sewer bills.”

Ainey said some area municipal authorities had raised rates.

Button said the NMMA had already absorbed two raises from the Hallstead-Great Bend Joint Sewer Authority. Those raises were not passed on to the customers, he said.

Borough council approval of the plan to refinance was needed in order for the NMMA to proceed. The borough is required to guarantee the loan.

Button said he expects the loan process to move quickly, with the refinancing in place in about one month.