Summit Hill Borough officials have announced significant progress has been made by the borough council in paying off loans the borough took out in recent years for major construction projects in the community.
In August, the council paid off a loan that was secured for the construction of a new borough garage for its maintenance department. Originally, the $200,000 loan was scheduled for full repayment on Dec. 16, 2014, but the council paid the $41,485.99 balance owed on it last month.
The accomplishment is significant in that the revenue which was budgeted to be used for that loan will help council pay a second loan in a more expeditious fashion.
When the town underwent its major building construction program a few years ago, resulting in a new fire company with an adjacent community center on Ludlow Street and a new borough building on Amidon Street, council borrowed $214,052 to accompany grant funds used to finance the project.
Of the $214,052 that was borrowed at the time, the balance on the loan is now down to $142,358.76. That loan is scheduled to be paid off on Sept. 25, 2015. Council said the $1,200 per month payment on the garage loan that it no longer has to pay because the loan has been satisfied, will be applied to the loan for the new buildings. It is anticipated the added funds will reduce the term of the existing loan by about a year.