Carbon County bond financing could save Palmerton money
Palmerton could save a nice chunk of change on the cost of its $10 million wastewater treatment plant.
Borough Council on a 5-0 vote Thursday approved the acceptance of Carbon County bond financing. Councilman Jason Behler and council President Terry Costenbader were absent.
Councilman Richard Nothstein informed council on Thursday that county commissioners earlier in the day approved an interest reduction loan that will issue economic development bonds.
What that means for Palmerton is about a $400,000 savings over the course of a 30-year bond issue, said borough Manager Rodger Danielson.
Danielson said the bond is "a real nice benefit for the borough."
The bonds are available through federal stimulus money, also known as the American Reinvestment and Recovery Act.
In June, the borough applied for an H2O grant in the amount of $8,164,530 to help afford a new wastewater treatment plant.
That decision came after council in April authorized Danielson and borough solicitor Michael Ozalas to prepare a $10 million bond issue after it learned the project would cost more than expected.
For residents, that will mean about a $17-18 increase in their monthly sewer bill rate, which could go into effect by Jan. 1, 2011.
As of January, the project was expected to cost the borough about $6.5 million; however, engineer estimates pushed the project's cost higher.
Also on Thursday, council approved a new public works contract.
The one-year contract calls for a one-percent increase in wages.
In other business, council:
- Approved the 2011 Minimum Municipal Obligations of $122,880 toward uniform employees, and $33,675 toward non-uniform employees.
- Approved a request from the Palmerton United Veterans for fire police assistance for their Carbon County Veterans Day Parade to be held on Nov. 7 from 2-4 p.m. in the borough.
- Approved specifications for brick-paved sidewalks.
- Approved a handicapped parking request for Robert Eck at 712 W. Princeton Avenue.
- Granted permission to take a 2002 Impala police car to a municipal auction in an attempt to sell it.