The Southold Town Board authorized four different bonds at a regular meeting last Tuesday, totaling $1.11 million, for infrastructure and planning.
Half a million was authorized for the construction of drainage improvements for stormwater mitigation, for which a resolution notes the “period of probable usefulness” is 40 years. Another $160,000 was authorized for “the construction of improvements to the Gull Pond bulkhead” and $250,000 was authorized for the construction of sidewalk improvements. The final bond authorized $200,000 for the preparation of a comprehensive master plan for land use and zoning throughout the town.
The period of probable usefulness for improvements to the Gull Pond bulkhead is 20 years and the period of usefulness for sidewalk improvements is 10 years. The period of probable usefulness for the master plan is five years.
A bond represents a loan made by an investor to a borrower, usually corporate or governmental, according to Investopedia. Bonds are used to finance projects and operations, the finance site notes.
Southold Town resolutions note the bonds represent the maximum estimated cost to each project. Proceeds from the bonds and “any bond anticipation notes issued in anticipation of said bonds” may be used to reimburse the town for expenditures on these projects. The proposed maturity of the bonds will exceed five years, except for the bond authorized to fund the master plan, which will not exceed that time period.