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Lower Tyrone enters into debt agreement

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Saturday, Oct. 13, 2012, 12:01 a.m.

Lower Tyrone supervisors this week passed a motion to enter into a debt agreement to guarantee a loan for the North Fayette County Municipal Authority.

Attorney Linda Hackett of Thorp Reed & Armstrong outlined the proposed guarantee that would help secure financing through the Rural Utility Service Program.

North Fayette County Municipal Authority acquired interim financing, and now that the water project in the area is completed, RUS is offering a lower finance rate if Lower Tyrone and Perry townships agree to guarantee the loan, which totals $967,000.

Lower Tyrone will be responsible for guaranteeing 72 percent of the loan, which equals $696,240.

“I am here on behalf of my firm to request that you consider this guarantee,” Hackett said.

Supervisors voiced concerns about the possibility of having to repay the loan. Township solicitor Melinda Dellarose of Davis and Davis said the township ever having to pay anything toward the loan is unlikely.

“It would be under unusual circumstances that the township would be responsible,” Dellarose said. “Your lines are in and the project is done. You are guaranteeing it, but the authority should be managed well enough to cover it.”

Supervisor Sean Ferris asked if the guaranteeing of the loan would be a reflection on the credit of the township if supervisors were to seek financing down the road for road work or equipment.

“We don't want to put ourselves into a position where we can't borrow money if we have to,” Ferris said.

“It's a lot of money,” Supervisor John Anderson said. “It's scary.”

Anderson and Ferris agreed to the motion with Supervisor Ken Frye voting no.

Resident Emma Jane Davis voiced her concerns about neighboring townships' discussions about possibly permitting ATVs on township roads.

“I think that we need to now stop this,” Davis said. “We already have enough ATVs on the road that aren't allowed. We don't need any more ATVs.”

Township resident Linda Cottom asked supervisors for help with the ongoing illegal dumping in the area.

“I'm still concerned about the illegal dumping in our township,”' Cottom said. “Is there anything that we can do to control it?”

Supervisors said they plan to place signage and littering fine information in problem areas.

Supervisors passed a new dangerous dog ordinance and decided to table a proposal from Chevron which requested a heavy hauling agreement with the township. Supervisors said they were going to research the request further.

Marilyn Forbes is a freelance writer.

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