Summit Hill agrees to borrow $135,000
Summit Hill Borough Council last night agreed to make a tax anticipation loan to cover expenses.
The loan, $135,000 at 3.25 percent, is for the payment of bills until the borough receives revenues from various taxes. Generally such tax revenue begins arriving in April, said borough treasurer Kira Michalik.
The financing is from First Niagara Bank and must be repaid by Dec. 31.
Michalik said there were several circumstances which forced the borough into the tax anticipation loan.
Among them is that nearly $40,000 is due this month for payment on the loan for the building project. This money is budgeted, but the borough doesn't have the funds at the present time to make the payment.
She admitted that the harsh winter also has some bearing on the borough's financial straits. With storm after storm occurring, the borough has been hit hard with the associated expenses.
Michalik explained that the borough has just about reached its limit of purchasing road salt from Cargill De-icing through the state's Co-Stars Program. Once the allocation is expired, the rate of the road salt could increase.
"Every week we've been ordering 50-tons of salt," Michalik said.
Besides buying anti-skid materials, the storms have resulted in an increase in the amount of fuel purchased to operate plows and snow removal equipment, as well as the cost of overtime paid to borough workers who have been working throughout nights and on weekends when storms occur.