Dalton Borough Council to apply for $800k Department of Agriculture loan to help with paving costs


By Ben Freda - For Abington Journal



DALTON — The Dalton Borough Council announced Dec. 10 it will apply for an $800,000 Department of Agriculture loan to be used to pay off a current loan of $263,000 and to fund street paving in the borough.

“My recommendation at this point is I’m going along with the Department of Agriculture,” said council member Bill Montgomery. “They (Department of Agriculture) say we can take this loan for 15 years, and pay it off at a 10-year rate. If we find ourselves a little short of money at some point, we can switch to a 15-year rate.”

Montgomery also said that the annual payment on a 10-year rate is $93,888, and the annual payment on the 15-year rate would be $67,488.

“These are monthly payments we can handle because as you recall last meeting, we decided to increase the debt service tax by 6 mills,” he said.

The board decided, with the approval of this loan, on Plan B of the loan options, which were mentioned in last month’s borough meeting. Plan B was to pay for Phase 1, Phase 2, and a little of Phase 3 for the paving project. The board voted to approve the loan, and pay it off in a 15-year period.

Mayor Aaron Holzman congratulated the board for coming to a consensus on the paving project.

“It’s something that needed to be done, and we have to start somewhere,” he said.

Zoning officer Jared Gard expressed concerns about the loan. He mentioned the fact that Dalton Council has to pay $138,000 in interest in addition to paying off the loan. He also said that the board has no capital.

“I’m not against paving the roads,” he said. “I’m against how we’re doing it.”

Gard also said that the board should have an ordinance for this loan in regard to how council is going to spend the loan.

President Gus Vlassis replied that the intent of this loan is strictly for paving. He said that he agrees that the board should get an ordinance. He said that he understands his concern.

Board member Bill Brandt said, “I’m pleased with all of the thought and all the work that’s been put in the budget and the road projects.”

In other news, the council voted to give Dalton Postmaster Tim Burke, who sponsors the Mile-nator race on Memorial Day, permission to begin planning next year’s race.

By Ben Freda

For Abington Journal

Reach the Abington Journal newsroom at 570-587-1148 or by email at news@theabingtonjournal.com.

Reach the Abington Journal newsroom at 570-587-1148 or by email at news@theabingtonjournal.com.

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