The Daily Item, Sunbury, PA

The Danville News

May 23, 2014

Valley Township approves loan, bond counsel for sewer hookup

VALLEY TWP. — The Valley Township supervisors have approved a bond counsel and a $2.4 million loan to pay off a state loan and to finance a township sewer connection to Danville.

The supervisors last week approved the loan at a 3.98 percent fixed interest rate for 30 years for tax-exempt bonds through Muncy Bank & Trust Co.

Harrisburg Attorney Ben Ried was named bond counsel. Appointing a bond counsel is a requirement of the lender.

The supervisors also adopted a resolution to extend the life of the township municipal authority 50 more years. The authority was formed in 1980.

The municipal authority previously approved the loan, bond counsel and life extension resolution.

Ried told supervisors the municipal authority would have a paper closing for the loan June 17 where a PennVEST loan of $1.1 million would be paid off. That loan was for a previous sewer extension project.

Construction costs of $1.3 million, to connect Valley’s sewer system to the Danville system, will be drawn from the bank as funds are needed, Ried told supervisors.

Larson Design will be paid for its work related to the project from a state grant previously awarded to the township for $900,000.

A connection fee of $510,000 won’t be paid until the system is done and tested, Ried told the supervisors. That will save the township interest costs, the supervisors were told.

The township authority will pay off the loan which will also be filed with the state Department of Community and Economic Development. After the filing with the state, approval is expected in three weeks. Ried saw no problems with approval being received.

Part of the township is connected to a municipal sewer system. This includes homes and businesses.

Township solicitor Robert Buehner Jr. told the supervisors the township authority met with members of the Danville Municipal Authority May 12 which resulted in a very amicable negotiating session toward the township connecting its system to the Danville system. Some issues remain.

The authorities are scheduled to meet again June 2 with Buehner expecting a final agreement to be reached in a few weeks.

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