Dunbar extends life of NFCMA for 50 years
Dunbar Borough Council agreed Monday night to extend the life of the North Fayette County Municipal Authority for another 50 years to allow the authority to take advantage of a 2.125 percent rate on a 40-year loan for a water-line extension project.
Borough council recently received a letter from Attorney Lisa A. Chiesa of Thorp Reed & Armstrong representing the water authority.
In the letter, Chiesa said Dunbar Borough incorporated the North Fayette County Municipal Authority under the state's Municipality Authorities Act in 1955. Twenty years later, Chiesa said Fayette County joined the authority.
In 1978, Chiesa said the borough and the county extended the life of the authority for 50 years or until 2028.
However, Chiesa said it was necessary for the borough to approve another 50-year extension in order for the water authority to qualify for the 40-year loan.
“The loan is expected to mature in 40 years or the year 2052 — beyond the current life of the loan,” Chiesa said in the letter.
The U.S. Department of Agriculture provided a loan commitment to the authority for a 40-year loan.
Chiesa said the proceeds of the loan will be used to finance a water-line extension into Perry Township and Upper Tyrone Township. The loan is expected to close in December this year and will be guaranteed by both townships.
“The loan would mature in 40 years or the year 2052 — beyond the current life of the authority,” Chiesa said in the letter.
Chiesa said the authority is asking that the borough agree to another 50-year extension to the life of the authority, so that it can take advantage of the 2.125 percent rate on the 40-year loan.
“There will be no cost to the borough for agreeing to the extension,” Chiesa said. “The borough will not obligate itself in any way for the debt of the authority with respect to this water-line extension.”
In other business, borough council:
•Announced that it is currently accepting applications for the hiring of a part-time police officer.
•Decided to set up a separate checking account for $7,066.34 it will receive from the Public Utility Commission (PUC) on Dec. 1 for Act 13 funds through the Marcellus shale gas drilling industry.
•Announced that a budget workshop session will be held at 6:30 p.m. Nov. 27, to discuss the 2013 tentative budget, which is expected to be adopted at 6:30 p.m. Dec. 27.
•Answered questions from about 15 members of Webelos No. 1 and No. 2 and Cub Scouts of Troop 180 who wanted to learn about local government to earn a badge.
•Opened bids for outside snow removal and agreed to review them. The borough decided to seek outside snow removal services this year because one of its trucks is broken.
Cindy Ekas is a freelance writer.