Dunmore council talks finances to make it through 2009
Published: October 27, 2009
Font size: [A] [A] [A]
e-mail this
share thisDUNMORE - Borough council has secured a $1.36 million loan for the underfunded 2008 budget.
Council voted 5-2 Monday in favor of the 10-year loan through First National Community Bank with a 4.5 percent interest rate.
President Timothy Burke, Vice President Paul Nardozzi, Michael Cummings, Thomas Hennigan and Sal Verrastro voted for the motion. Gerry Hart and Melanie Naro cast dissenting votes.
Borough solicitor Thomas Cummings said as a condition of the loan, the borough will pay back its roughly $1.2 million tax-anticipation note for 2009, in addition to designating debt service for the loan each year to ensure prompt payment.
While the motion to approve an ordinance enacting the loan passed, an earlier council vote on borrowing the money during a public hearing Monday went differently. Mr. Cummings and Mr. Hennigan abstained because they own stock in the bank. Mr. Verrastro also noted he owns stock in FNCB but said he could still vote as long as he disclosed his interest to the public. He voted yes, as did Mr. Nardozzi and Mr. Burke. Ms. Naro and Mr. Hart cast dissenting votes.
Mr. Hart asked why borough representatives contacted no other banks for the loan.
"So we don't know if (4.5 percent) is the best rate or the worst rate?" he asked.
Thomas Cummings said the loan is associated with the borough's tax-anticipation note.
Council also unanimously passed a motion to basically prioritize borough bills, making sure to reserve money from the FNCB loan to pay Dunmore's upcoming workers' compensation policy quarterly renewal bill, which is expected to cost more than $130,000.
Michael Cummings called the bill the borough's "first priority."
"We are uninsurable if we cancel our policy," Ms. Naro said.
Contact the writer: mreiter@timesshamrock.com
5 posted comments