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Greencastle benefits from low interest rates

May 07, 2002|BY RICHARD F. BELISLE

waynesboro@herald-mail.com

GREENCASTLE, Pa. - Low interest rates may be a bane to investors but members of the Greencastle Borough Council learned Monday night that they can also be a boon.

The borough will gain a $216,000 windfall by refinancing a $3.2 million bond issue for construction of a public water treatment plant, according to financial consultants at Monday's meeting.

The Greencastle Water Authority took out the loan in 1994 from Citizens Bank at an interest rate of 6.2 percent. Semi-annual payments on the loan are $121,000.

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The loan was guaranteed by the borough. Under the refinancing, the borough, not the water authority, will be able to issue the bonds, the consultant said.

The council will refinance the loan at a fixed interest rate of 4.4 percent over the life of the loan, the consultants said.

The council approved the refinancing by a unanimous vote. Water Authority members were present Monday and held their own meeting to approve the refinancing package.

In other business:

n Nine property owners took out building permits totaling $390,000 in April, all for residential projects for additions and renovations to new home construction.

n Mayor Robert "Red" Pensinger asked the council for a $500 appropriation for uniforms for the borough's two parking meter readers. He said downtown merchants want the uniforms so the meter readers will "look more professional."

The council approved the appropriation.

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