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Township plans to clean up 2010 interfund loan; finance recommends $200,000 per year for three years
Summary
The board discussed repaying a $750,000 sewer‑fund loan made in 2010; finance reported the outstanding balance is just under $600,000 and recommended a three‑year repayment plan of $200,000 per year to clear the liability, to be added to the 2025 budget for formal approval.
The Springettsbury Township Board of Supervisors discussed a long‑standing interfund loan from 2010 in which the sewer fund loaned the general fund $750,000 for a land purchase. Finance staff told the board that the repayment had been structured around $10,000 per year in farm rental income and that current reserves and pending grant receipts make it appropriate to revisit the schedule.
Finance reported the outstanding balance on the loan is “just under $600,000” and recommended a three‑year payoff plan of $200,000 per year to remove the liability from both the sewer and general funds. Finance director Terry said the township is also awaiting approximately $5 million in grant awards for completed projects, which supports accelerating repayment.
Supervisors indicated general support and asked staff to include the repayment proposal in the 2025 budget for a formal vote. One supervisor said it would be best to document the plan and then approve it when the budget is adopted.
No formal payment was authorized at the meeting; supervisors acknowledged the recommendation and instructed staff to include the proposal in the upcoming budget process.
