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Morrisville council approves $1.625 million DelVal note to repave borough streets; vote 7–1
Summary
The borough approved a $1.625 million Delaware Valley Regional Financing Authority note to fund a 2025 road paving program, with council voting 7–1 after questions about fees, amortization and worst‑case interest rates.
Morrisville Borough Council voted 7–1 on April 15 to adopt an ordinance authorizing non‑electoral debt of $1,625,000 to finance a boroughwide road‑paving program in 2025.
The parameters ordinance presented by Jeffrey Calhoun of the Delaware Valley Regional Financing Authority (DelVal) authorizes the borough to execute loan documents, pledge full faith and credit, and file with the Pennsylvania Department of Community and Economic Development. Calhoun told council the ordinance uses a parameters approach with a 15 percent statutory maximum interest rate under the Pennsylvania Debt Act but that the borough intends a variable rate; he said the variable rate has historically been under 2 percent over 20 years and hovered around 3.2 percent in the most recent quarter.
Why it matters: council members emphasized the borough’s deteriorated street network and said financing the entire borough at once would be more cost‑effective than piecemeal repairs. Council discussed amortization choices, fee and closing costs, and lifetime interest under different rate assumptions.
Calhoun said the DelVal fees associated with enactment are disclosed in the ordinance and identified the DelVal portion of issuance costs as $808,125. On lifetime cost, he said, “If you assume a 15 percent interest rate for the entire life of the loan your interest you'll be paying is 3,400,000. If you take a more reasonable guess at what interest rates will be… your total interest payment over the life of loan is under 800,000.”
Councilmember Scott moved the ordinance; Luke seconded. During the roll call, Council President Catherine recorded a no vote; the measure passed by a 7–1 tally.
Next steps: with the ordinance adopted, the borough may finalize DelVal loan documents and proceed with closing and contract execution for the road program. Council members suggested monitoring market rates and consider fixing the loan if interest rates decline.
Votes at a glance: - DelVal general obligation notes (2025 series): passed 7–1 (mover: Scott; seconder: Luke). Opposed: Catherine. - Consent agenda (minutes, bill list, contracts for 2025 road program and Manor Park playground): passed 8–0. - Responsible Contractor Ordinance amendment (adds a 30‑day cap on review): passed 8–0. - Gilmore & Associates proposals (Burrows River trail concept and West Philadelphia Avenue traffic‑calming study): each authorized, votes 8–0.
