Commissioners Discuss Bond Loans, Projects

In a special commissioners work session this past Monday night, the Haverford Township Board of Commissioners discussed the options of borrowing a $6 million bond.

Gordon L. Walker, managing director of Public Financial Management (PFM), advised the commissioners to get the $6 million bond from Delaware Valley Regional Finance Authority (DelVal). 

One of the bonuses of going with DelVal said Walker was that the expected interest rate would be .73 percent and it would be a $59,000 savings in interest for the township. Walker provided a brief report for the commissioners comparing borrowing money from DelVal versus a general obligation note. The report can be read as a PDF document accompanying this article.

Third Ward Commissioner Jane Hall asked Walker what the risks would be if the township borrowed the money from DelVal.

He replied that there would not be a lot of risk.

“I don’t know of any reason not to (go with DelVal),” he said.

However 6th Ward Commissioner Larry Holmes took issue with the fact that the township would be borrowing money from a group that borrows money.

While Walker assured the commissioners that there would be little problem borrowing the money from DelVal, Holmes stated that the U.S. has been living in economic uncertainty for the last few years and that anything can happen.

Ninth Ward Commissioner Bill Wechsler told the Haverford-Havertown Patch the goal of the meeting was to determine who to borrow the money from and the commissioners would further discuss the topic at next Monday’s commissioners’ work session. 

What The Money Would Be Used For

According to Township Manager Larry Gentile, he proposed that the money be used for the following items:

• $1.75 million for the road-resurfacing program
• $2 million for park improvements
• $1.5 for the Naylors Run Sanitary Sewer project
• $500,000 for various sanitary and storm sewer replacements
• $250,000 for various park and public works equipment purchases 

Gentile advised the commissioners that the road-resurfacing program be done in 2012. If not, it should be postponed until after the U.S. Open in 2013.

After the meeting Gentile told Patch that if the township does borrow the $6 million, it would mean a .5 percent tax increase (or $30,000) for the residents to pay back.