Ford City Offered $3.1 Million Loan for Water Plant
The current Ford City Borough water treatment plant - which is more than 100 years old - will be replaced after a Borough decision last year, and council members received a loan offer yesterday to help fund the new construction. (KP File Photo)
by Jonathan Weaver
The Pennsylvania Infrastructure Investment Authority (PennVEST) offered Ford City Borough money to help fund their new water plant after a board of directors meeting yesterday afternoon.
In February, Gibson-Thomas Engineers recommended Ford City Borough Council apply to PennVEST for either a grant or loan for the estimated-$3.2 million plant.
Borough Manager Eden Ratliff and Council Vice-President Jerry Miklos attended the board of directors meeting in-person in Harrisburg yesterday afternoon.
“PennVEST presented us with a loan offer of $3.1 million,” Miklos said.
Miklos said, while he is appreciative of the offer, “(Council) will be looking at all other possible funding sources.”
“We certainly owe it to our water customers to search for other possible funding sources,” Miklos said. “We have been doing that and we will continue doing that until Council decides whether to accept this. We’ve been working hard to get the best deal we can – that’s our job.”
He expects the matter to be voted on as early as next month’s regular council meeting in the Ford City Public Library.
Miklos emailed the news to his fellow Council members, as well as told Council President Kathy Bartuccio in-person upon their return from the three-and-a-half hour trip.
Ratliff calculated that with 1,200 residential customers, the one-percent interest would equal about $12 per year in interest for the next 20 years.
“Council and I are going to work very hard to make sure that this is the best deal,” Ratliff said. “It is our responsibility and our duty to make sure we’re acting in the best interest of the taxpayers.
“It would not be fiscally-responsible to just pick the first (offer). We need to make sure we’ve turned over every stone.”
Ratliff initially registered Ford City Borough to review the results via teleconference, but he and Miklos decided it was an important decision that prompted personal attendance.
In February, Ford City Engineer Ed Schmitt of Gibson-Thomas Engineering discussed the up-to-date preliminary construction estimate for the new water treatment plant, among other repairs or demolition, and recommended the PennVEST application (KP File Photo)
Gibson-Thomas Engineers Ed Schmitt said that is the lowest interest rate available to local municipalities.
“PennVEST would not have reviewed the application had the proper permits not been obtained,” Schmitt said.
Senator Don White and Representative Donna Oberlander are part of thePennVEST board of directors, and voted on yesterday’s action.
“I was pleased to support Ford City’s application for PENNVEST funding,” Senator White said in a news release. “This loan will allow the borough to move forward in a manner that will ease the financial burden on ratepayers. In fact the projections by PENNVEST show this loan means the cost of the project will translate into only a $1 per month increase per customer. So for $1 per month, they’re getting a brand new water system.”
The PENNVEST loan is the latest in a series of state funds awarded to Ford City for the water treatment project and other infrastructure improvements.
In 2010, Sen. White and Representative Jeff Pyle secured a $467,000 Safe Drinking Water Grant for Ford City to move forward in making improvements to the water system. Ford City has also received $662,172 in H2O PA program funding in July 2009 to add wastewater disposal facilities, cover existing sedimentation tanks, recoat the elevated water storage tank, and replace appurtenant equipment to improve an aged and unreliable water system.
“This long-awaited project will take care of existing problems Ford City has been experiencing with its water system,” Representative Pyle added. “The state Department of Environmental Protection has noted numerous compliance problems with the borough’s existing water plant and said that it needs to be decommissioned. This funding will help improve the quality of life in the community and enhance its attractiveness for economic development and job creation.”
PENNVEST financing is provided through the use of federal funding and prior bond issues by the state. It is not supported by the state’s General Fund budget, which covers the daily operations and services of the Commonwealth.
“It’s one of the most sought-after funding sources,” Miklos said. “There was a lot of money put on the table (yesterday), both loan and grant money.”
An application was also submitted to Rural Utility Services – another statewide funding source.
Following the meeting, Ratliff and Miklos also discussed the matter with Western Region Director Larry Gasperado.
Ford City Borough elected officials voted after a special town hall meeting in March 2014 to proceed with building a new water plant rather than contracting with the Manor Township water authority or with Pennsylvania American Water – which is contracted in Kittanning Borough.
Local News | jweaver April 23, 2015
By suzkin33, April 23, 2015 @ 9:14 AM
To say I am shocked that FC was approved for a loan for 3 million dollars would he an understatement. How bout we settle that pesky $560K repayment first before we put the final nail in the coffin?!
By waldo, April 23, 2015 @ 2:33 PM
Am I losing my mind we have a teenager negotiating a loan. We have no money to pay the police we owe everyone money and were borrowing more from the same Dumbbells we never paid last time. Just buy the water like everyone else does and stop this silliness.