Emmaus council adopts ordinance to increase indebtedness for well funding

Emmaus Borough Council on March 17 adopted Ordinance 12-77 to increase the borough's indebtedness by $2,048,745 to enable the borough to accept the loan portion of a larger water/well funding package.

Council adopted the ordinance after the borough solicitor summarized the financing and review process. The solicitor and borough staff said the borough recently received $11,800,000 in funding for the wells, of which $9,800,000 was grant money and the remaining roughly $2,048,000 was a low-interest loan that requires the borough to formally increase its indebtedness and file related notices with state agencies. The solicitor said the Department of Community and Economic Development reviewed the submission and “did not have any questions.”

The ordinance as read on the floor listed the debt increase at $2,048,745. During discussion the solicitor and staff characterized the loan portion as roughly $2,048,000 and explained additional administrative filings the borough manager must complete if DCED requests changes. The solicitor said the loan carries a low interest rate (under 2 percent, as stated in the meeting) and that the debt amount is small relative to the grant portion.

The motion to adopt Ordinance 12-77 was made by Mr. Ladenburg and seconded by Mr. Dufresne. The council approved the ordinance by roll call: Miss Watt, Mr. Anders, Mr. Lisonbee, Mr. Dufresne, Mr. Brown, Miss Bumgarner, and Mr. Balliett all voted aye (7–0). The solicitor and borough manager said staff will submit the final indebtedness paperwork and the self-liquidating debt documentation required by the funding program.

The ordinance authorizes a general-obligation note and makes the borough covenant to pay the debt service; the solicitor advised the council that DCED may still request revisions but that the submission should be in order to proceed with the loan and grant package.