DALTON — Mayor Aaron Holzman announced four loan options for a future paving project of Huntington Woods at the borough council’s Nov. 12 meeting.
He said choosing a payment option depends on how much the borough can afford. He listed details of four options for the five-phase project.
Holzman said Plan A consists of paying the council’s current loan while simultaneously taking a loan of $500,000 for a 15-year period. He said Phase 1 will cost approximately $3,000.
“The money you had allocated for the previous loan will go toward the principal on this loan, and you’ll be able to pay that off in eight-and-a-half years,” he said.
Holzman then explained Plan B, which is also $500,000 and includes paying the first loan, but this time it will be paid off in nine years.
“There’s no benefit in terms of cost saving between A and B,” he said.
Holzman said Plan C allows the borough to complete the first two phases and some of the third phase.
“In that one, you are looking at borrowing $1.275 million for 15 years,” he said.
Holzman said Plan D would be to all five phases and pay $16,000 per month.
Zoning officer Jared Gard suggested an ordinance requiring that money set aside for paving would only be used for paving.
“We have to dig ourselves out of the hole with the Huntington Woods paving project before we really can continue to roll with the rest of them,” he said. “We need to become solvent, and get ahead of it. We’re just going to have to deal with how the roads are. Do the worst ones now that we can with the loan that we have.”
President Gus Vlassis said if the council doesn’t do anything, it is being irresponsible.
“We have to do something and we have to start next year,” he said.
Holzman asked board member Bill Brandt how long the roads planned for Phase 2 will last before they deteriorate. Brandt replied it will depend on winter weather and salt used on icy roads.
Vlassis sad he will ask the finance committee to discuss the plans and make a recommendation.
In other business, Vlassis suggested the council write a letter to the Lackawanna County Commissioners regarding reassessment.
“Some people have gone three years in a row and had their taxes reduced each year,” he said.
Vlassis said that has caused the borough’s millage to decrease.
“It’s costing us money,” he said of the tax reductions.“We want to ask them to put it in the plans for next year to get started,” he said.
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