costly consequences<\/a> tied to a loan through the Pennsylvania Infrastructure Investment Authority, or PENNVEST, that is helping to fund the construction of a new water tank.<\/p>\nThe borough voted in April is dissolve the authority, but has not yet implemented that ordinance.<\/p>\n
Mount Penn Mayor Ryan Maurer told borough council last month that PENNVEST recently warned that if the borough proceeds with dissolving the authority and assuming its assets without an agreement, the authority\u2019s low-interest loan for the new water storage tank could be called due immediately.<\/p>\n
The authority borrowed about $2.83 million through PENNVEST for the $3.7 million tank project on Spook Lane. A $750,000 state grant will cover the remaining costs.<\/p>\n
The warning from PENNVEST meant that if the authority was dissolved that borough would immediately have to pay off that loan and secure another to cover the cost of the project.<\/p>\n
It was estimated that such a move could cost the borough about $900,000 more in interest over 25 years.<\/p>\n
With this week\u2019s announcement, that scenario is avoided.<\/p>\n
Maurer and authority chairman Joseph Boyle issued a brief statement Tuesday stating that representatives from the borough and authority believe they have a framework for a leaseback agreement that would shift ownership of the water system to the borough, which would then lease it back to the authority.<\/p>\n
The agreement is pending approval of the authority board and borough council.<\/p>\n
The statement did not included details of the agreement.<\/p>\n","protected":false},"excerpt":{"rendered":"The Mount Penn Borough Municipal Authority and borough officials have reached an agreement on a plan for the…\n","protected":false},"author":2,"featured_media":232962,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[349,182,139,28,128,130,129,706],"class_list":["post-232961","post","type-post","status-publish","format-standard","has-post-thumbnail","category-reading","tag-berks-county","tag-local-news","tag-news","tag-pennsylvania","tag-reading-city","tag-reading-city-headlines","tag-reading-city-news","tag-top-stories-reg"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/232961","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/comments?post=232961"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/232961\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media\/232962"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media?parent=232961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/categories?post=232961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/tags?post=232961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}