Kittanning Borough Council has not seen reimbursement for its revitalization project from the Commonwealth of Pennsylvania, and will pursue a bridge loan for $1.2 million in order to pay contractors.
from the KP NewsDesk
Kittanning Borough Council held their reorganization meeting for three specific offices on Council.
Third Ward Councilwoman Kim Fox, who was re-elected in November for her second term in office, was nominated for the office of President by Councilman Wilbur Stitt and seconded by Councilman Christopher Schiano. She was appointed with full support of Council with the exception of Councilman Andy Peters who did not attend the meeting.
Fox looks at her new position optimistically.
“We’ve made great progress in the Borough in the last four years. That’s my goal; to continue moving aggressively forward with paving, revitalization, keeping a balanced budget… We’ve made great strides and I want to continue that.”
Third Ward Councilwoman Kim Fox was appointed Council President last night in Kittanning. (KP File Photo)
Fox currently serves on the Conference Committee for the State Association of Boroughs in Harrisburg. She is also an Alternate for the Board. Last year, she served as President of the local Armstrong County Association of Boroughs.
“My goal is to continue training, getting educated, and keeping up to date on all the State issues that reflect back on the Borough.”
Fox said she wanted to promote teamwork on Council.
“We have a great group of council members and we work as a team. I’m here to run a meeting as president, but we are a team and we work together.”
Two council persons were nominated for the position of Vice-President. Councilman Wilbur Stitt received support for the position.
Councilman David Croyle was nominated for President Pro Tempore. He was unanimously appointed to the position. This is the second year Croyle has served in the position. The position presides over the chamber in the absence of the normal presiding officer.
Council tackled budgetary issues at their first meeting. Council woman Betsy Wilt made a motion to reopen the budget, which received the support of all of Council. Members now have until the monthly meeting on February 1 to address issues including a shortfall of over $150,000 left over from the 2015 budget.
Council also approved applying to area banks for a loan of $1.2 million for interim financing for the Revitalization Project now in Phase Two on Market Street. Solicitor Tyler Heller explained said the Borough is delinquent of nearly a quarter of a million dollars to M & B Services who is doing the improvement work to Market Street. Because of the delinquency, M & B has added interest to the amounts - some of which are overdue by more than three months.
“The grant that the Borough received to pay for a significant portion of the Market Street project is a reimbursable grant. That means that the Borough must first pay the contractor, and then the State administering the grant program, reimburses the Borough. Cash is flowing much slower than we expected. In order to pay the contractor and keep the thing moving, we’re putting into place an interim financing to manage cash flow on the project,” Heller said.
The loan funds will only be used as necessary, and interest will only be paid from the time funds from the loan are used until they are paid off through State money. Heller could not estimate the total cost of interest which the Borough will have to pay.
“You’re looking at some cost to the Borough. I don’t have an exact dollar figure because that that interest is going to depend on how much of the line we actually draw.”
Kittanning Council also plans to secure another Tax Anticipation Loan for $250,000 to operate the Borough until tax revenue will be received in April or May.
A special meeting is planned on Thursday, January 14 at 5PM in Council Chambers.