At last night’s Clymer borough council meeting, council took care of two projects. One of them concerned the borough’s water, and the other concerned the borough’s streets.
Last night, borough council approved adopting ordinance #361, which authorizes the municipal authority to incur debt for the water system improvement project. According to Wayne Kablak, solicitor for the borough, the ordinance means that the municipal authority can borrow the money for the water system project, but the borough is required to guarantee it, meaning if the authority can’t pay, the borough would be on the hook. Kablak also called this a case of self-liquidating debt, as the municipal authority will pass along their permit showing that their fees will be able to take care of the impending debt. The project will focus on replacing some pipes throughout the borough.
The other motion last night would be to borrow $500,000 for ten years with annual payments to First National Bank of PA at a fixed interest rate of 3.17%, which was the lowest and most secure interest rate they could get when the loan was put out for bid. Rob Barto, acting borough manager, talked about the project’s details.
The yearly amount due for the borough will be $59,000 a year for ten years.
