HANOVER TWP., Pa. – The Hanover Township Board of Supervisors in Northampton County unanimously agreed Tuesday night to publicly advertise a proposed ordinance for the municipality to secure a $7.5 million loan.
The loan, with a 15-year repayment schedule, would help to cover the costs for a revamp of the township's community swimming pool and a stormwater drainage improvement project.
A presentation by asset management company Public Financial Management Company (PFMS) of Philadelphia explained the loan would carry a 1.7% annual interest rate with an extendable three-year usage requirement. The loan is expected to finance somewhere between $3 million to $5 million to repair and reconfigure the township's pool for a possible opening in the summer of 2023.
Supervisors voiced their concerns about possible supply chain shortages with regard to the capital improvement projects. However, the financial representatives allayed their fears by pointing out that the three-year spending deadline could be extended to five in the case of supply delivery delays and shortages.
Township Manager Jay Finnigan said the township has twice the proposed loan amount in savings and other reserves. He added the township will be able to repay the loan without being forced to cut back on any services the township currently offers its residents and businesses.
However, Finnigan did comment that if the township's financial situation took a dramatic turn for the worse, a future tax increase would be a last resort but not totally out of the question. He also pointed out that the township has the lowest tax rates compared to its neighboring municipalities.