Walnutport approves parameters ordinance

Walnutport hopes to save money through the refinancing of a loan.

Borough council at a workshop session on Thursday unanimously approved a parameters ordinance.

Council’s decision came after it heard from Jamie Schlesinger, director of PFM Financial Advisors LLC.

Schlesinger noted that the borough has a $2,258,000 bank loan with Neffs National Bank from 2014.

He said the maximum principal amount under the parameters ordinance is $3,250,000, which is what the borough incurred.

However, Schlesinger said the anticipated actual borrowing is $2,510,000.

He said the borough may have $100,000 of new money it could use for flood repairs for the pipe at the canal.

That money is expected to reimbursed by either the Federal Emergency Management Agency or Pennsylvania Emergency Management Agency, and they will pay off the portion of the debt attributable to the repairs as soon as the funds are received by the borough, Schlesinger said.

He said final maturity of the debt is expected to be 2037, and the average payment will be about $180,000 per year.

Schlesinger said the borough asked PFM to investigate restructuring opportunities that would keep the annual payment the same, or stretch if out and reduce the payment.

He noted that doing so may have a positive annual budgetary impact, but will have higher costs over the life of the financing.