S. ABINGTON TWP. — The Abington Regional Wastewater Authority (ARWA) recently voted to pay off $1.3 million in debt, spread between two loans from the upgrade of the treatment plant, according to Lauren Elliott, director.
Of the $1.3 million, Elliott said $450,000 was paid toward a $4.5 million loan, and the other $850,000 was paid on a $850,000 loan.
She explained each year when there is money left from the budget, ARWA normally invests it, but the board decided instead this year to put it toward the loans.
“At this point in time, this was the best thing to do,” she said, citing current interest rates as part of the reason for the decision.
Clarks Green Councilman and ARWA representative David Rinaldi explained the significance of this decision at a recent borough council meeting, saying, “It’s very seldom that entities pay off their borrowing.
“Some get into trouble by borrowing and re-borrowing…under the guise of saving money,” he said.
ARWA operates by a joint agreement between Clarks Summit and Clarks Green boroughs and South Abington Township. Each municipality makes quarterly contributions, based on its number of EDU’s (equivalent dwelling units). On the 2018 budget, the quarterly obligations are: $257,837 for Clarks Summit (34.85%), $414,894 for South Abington (56.08%) and $67,091 for Clarks Green (9.07%).
Reach Elizabeth Baumeister at 570-704-3943 or on Twitter @AbingtonJournal.