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Trappe Council renews $100,000 line of credit and introduces $645,000 interim loan ordinance for wastewater upgrade
Summary
At its Dec. 3 meeting, the Trappe Town Council unanimously adopted Resolution 4-2025 to renew a $100,000 line of credit and introduced Ordinance 7-2025 to authorize up to $645,000 in interim financing for design of an ENR wastewater upgrade; a public hearing is set for Jan. 7, 2026.
The Trappe Town Council on Dec. 3 unanimously adopted Resolution 4-2025 to renew a Shore United Bank line-of-credit promissory note in the principal amount of $100,000 and introduced Ordinance 7-2025 to authorize up to $645,000 in interim financing to cover design costs for an Enhanced Nutrient Removal (ENR) upgrade to the town’s wastewater treatment plant.
Town Attorney Lyndsey Ryan reviewed the history of the existing line of credit and said it is renewed annually; the line currently has a zero balance. Attorney Ryan told the Council that proceeds of Ordinance 7-2025 would be used to pay for design work on the ENR upgrade and that the town intends to repay the loan with grant funds from the Maryland Department of the Environment (MDE). She said the introduced ordinance specifies a 5.25% interest rate and a maturity date of Dec. 31, 2026.
The move to renew the $100,000 line of credit was made by Commissioner Rose Potter and seconded by Commissioner Michael Sullivan; the motion carried 4–0 (Sullivan, Newnam, Potter, Chase voting yes). Commissioner Potter also moved to introduce Ordinance 7-2025; that motion likewise passed unanimously. The council scheduled a public hearing on the ordinance for Jan. 7, 2026, at 6:00 p.m.
Why it matters: The ordinance provides interim cashflow to keep design work moving on a wastewater plant upgrade intended to meet enhanced nutrient-removal requirements. Because the town plans to repay the loan with MDE grant funds, the financing is presented as short-term bridge funding rather than a permanent debt increase.
Details and next steps: The introduced ordinance pledges the town’s full faith and credit toward repayment of the note and sets parameters for rate and maturity. The public hearing early next month will be the next formal opportunity for public comment and for the council to consider final adoption.
The council took no formal action at the meeting to adopt Ordinance 7-2025; it was introduced for consideration and will return after the Jan. 7 public hearing.
