01/16/2025
Rates & Rainfall
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October 2024 was a historically dry month, as we saw a total of 0.8 inches of precipitation. In comparison, average monthly rainfall for the previous ten Octobers was 5.2 inches. In response, local governments and regulators, including New Paltz, issued burn bans and drought watches. Fortunately, our dry spell broke and we finished the year with over 10 inches in November and December combined.
Curiously, 2024 overall was a wetter than average year, receiving 59.4 inches. The wettest for the last eleven years was 2018 (69.2’’) and the driest was 2020 (34.6’’). Our precipitation figures are supplied by the Mohonk Preserve. Collection of data by Mohonk began in 1896.
With the tragic fires unfolding in Los Angeles, we have also been discussing precipitation volume and the risk of dry periods with our Fire Chief and New Paltz’s Local Emergency Planning Committee.
We have always watched rainfall because our municipal water system costs less to run when there is more precipitation. For example, recent rain and snow put us in the optimal position of not buying any DEP water from 12/11/24 through 1/14/25. We sourced all drinking water from our local reservoirs before it goes through our state-of-the-art, multimillion-dollar water filtration plant.
Rain and snow melt that ends up in our surface water reservoirs off Mountain Rest Road allows New Paltz to buy less water from the NYC DEP’s Catskill Aqueduct, and therefore, helps us accelerate debt payments that funded our expensive water infrastructure projects.
The Village of New Paltz borrows money for various capital projects using a combination of short- and long-term notes and bonds. Most recently on 1/15/25, our $800,000 bond anticipation note (BAN) was listed on S&P Global's Ipreo Parity auction system. Only licensed banks and broker dealers may use the system, who bid on lending us money. Banks tend to hold short-term BANs like ours and broker dealers will offer them to their investing clients.
Four licensed institutions offered to lend us money on January 15th. NBT Bank, headquartered in Central NYS’s Norwich, provided the lowest net rate at 3.7% for us to borrow funds starting 1/30/25, to be paid back by 1/30/26.
Our run of net rates for BANs:
1.16% Oppenheimer - Sep ‘16
1.27% Oppenheimer - Sep ‘17
1.91% Jefferies - Mar ‘18
2.15% Jefferies - Sep ‘18
1.40% BNY Mellon - Sep ‘19
1.39% Piper Jaffray - Nov '19
0.59% Green County Commercial - Oct ‘20
0.23% Oppenheimer - Sep ‘21
0.56% Green County Commercial - Feb ‘22
2.96% Fidelity Capital Markets - Sep ‘22
3.36% Jefferies - Feb ‘23
3.86% TD Securities - Sep ‘23
3.93% BNY Mellon - Feb ‘24
4.09% BNY Mellon - Jul ‘24
3.42% Piper Sandler - Sep ‘24
3.70% NBT Bank - Jan ‘25
Mayor Tim Rogers
