Macungie Needs $1 Million—Where Will it Come From?
The borough's three capital projects require about $1 million. Borrowing options will be presented April 1.
The borough of Macungie is seriously considering taking on three big projects for which it will need serious financing.
It is already committed to the construction of Lumber Street which is already the site of the partially constructed Devine School.
The other two projects include a traffic study and the probable installation of a traffic light at Church and Main streets and the reconstruction of Cotton Street.
Together the projects will cost about $1 million, and borough council has agreed to consider financing all three projects at one to avoid having to do it three separate times, possibly under duress or when rates are not as favorable as they are right now.
To guide them them through the process council has hired Gary Pulcini of Valco Capital Ltd, a specialist in municipal financing, according to Borough Manager Chris Boehm.
Pulcini will hold a workshop to outline the borough's financing choices at 6:30 p.m. April 1, immediately preceding the next coucil meeting.
Options include loans and bonds, and withing those options, Boehm said at council's Monday meeting, are several term variations including length of repayment times.
For example, taking out a loan for $1 million will cost the borough $61,000 per year if it chooses to repay over 20 years; $73,000 if it chooses a 15-year repayment plan, or $100,000 a year for repay a loan over 10 years.
Pulcini will present general numbers at the workshop and take questions from council members. He will compile more specific numbers as per council's instructions on April 1 that will be presented at the April 15 council meeting.
The borough's other option is to issue a bond, Boehm said. Bonds have higher fixed costs but lower interest rates. Loans have lower fixed costs but higher interest rates.
Dave
7:40 am on Tuesday, March 19, 2013
With the exception of the traffic light at Church and Main, which I think will cause more congestion than anything else, I think these are worthwhile projects for the council to work on in the effort to improve our little town. But I must ask, where is mayor loud-mouth? If the cry-baby mayor would put the energy into these projects, designed to improve the town, the same energy and fervor he puts into his childish school-yard spat with the police department, we'd find the funding no problem. Oh well. he's probably too busy at home trying to figure out how to use the flower camera to monitor the police department, (Chief Harry, tell your fine Officers not to stop and smell the roses, the "mayor" might soil his diaper). The new council President will get this done and once Gary Corder gets into office, Macungie will flourish.
Dave
7:41 am on Tuesday, March 19, 2013
This is all my opinion by the way
Lanya
10:15 am on Tuesday, March 19, 2013
The photo of Kalmbach Park here is misleading. I thought someone was going to be spending a million dollars to fix up the park.
Mariella Savidge
10:18 am on Tuesday, March 19, 2013
That's a good point, Lanya. I'll change it. It's Cotton Street that needs the work.
Michael D Siegel
10:47 am on Tuesday, March 19, 2013
The traffic signal at Church needs to be closed loop with Buckeye Rd signal and the railroad crossing otherwise traffic backups during the hours of 4-7 pm will be a nightmare when a train crosses. If you want to install cameras on the signal heads, that would be worthwhile adventure for your police dept?. Also blinking yellows after 11:00 pm might be considered on RT 100. The left turn lane signal will be helpful. Lighted pedestrian crosswalks? Raised crosswalks? This all costs money-hope this was considered in the loan
crazyj
4:22 am on Tuesday, April 2, 2013
This stories math does not make sense!..according to the above story,borrowing
1 million dollars has 3 repayment options..the first $61,000 over 20 years will add up to
$1,220,000.00 total repayment after 20 years meaning the cost of this loan is $220,000. The 15 year repayment is $73,000 per year for a total of $1,095,000.00,
meaning a cost of $95,000.00. And finally,the miracle one of repayments of $100,000.00 a year over 10 years equals $1,000,000.00. Meaning that this plan if chosen does not cost the town one penny!..An interest free 1 million dollar loan??
This info comes from the manager? Well maybe she can't decide,but let me do this for her, an interest free million dollar loan is the way to go!..Or maybe we need a new manager who can do the job of managing and simple math!.This way we don't have to outsource someone else at an additional cost to figure out how best to get a loan! This is akin to the chief of police hiring someone to help him find a way to make arrests...Just hire the competent one in the first place..This too is my opinion!..