Advertisement

Borough to borrow money to get storm water project rolling

March 06, 2011|By JENNIFER FITCH | waynesboro@herald-mail.com

WAYNESBORO, Pa — The Waynesboro Borough Council decided last week it will seek interim financing to start a project designed to alleviate flooding in the town’s undersized and aging storm water system.  The council agreed to tap into an existing line of credit from Susquehanna Bank and seek additional lending from the bank to borrow a total of $975,000. The municipality would use the funding to start the project before closing on a low-interest loan from the Pennsylvania Infrastructure Investment Authority, commonly called PENNVEST.  Solicitor Sam Wiser said the PENNVEST loan, which totals $6.3 million, could reimburse the interim financing after closing in mid-October.  According to Wiser, if the borough issues a notice to proceed to David H. Martin Excavating now, the Chambersburg, Pa., contractor can start work at the Cemetery Avenue outfall and complete it by December. The contractor will widen arches in the outfall.  Additional phases in the project could wrap up by early 2013.  Borough officials have said the project is necessary to address several issues, including the flooding of homes and yards in the south end of town.  Wiser asked the council to consider issuing a tax anticipation note, which allows government bodies to borrow based on anticipated tax revenue.  "You tend to get a better rate on that because it's less than a year. ... You will incur some additional costs because the initial financing rate is a little bit higher than the PENNVEST rate, but it's the only way to get the project started,” Wiser said.  Borough Manager Lloyd Hamberger said he had not used the $300,000 tax anticipation note issued in January for unexpected costs. That note was issued at a rate of 1.87 percent.

Advertisement
The Herald-Mail Articles
|
|
|