The Foster Township Supervisors talked about ways to fund a sewer extension project that has been mandated by the state Department of Environmental Protection during a work session held on Thursday night.
Township engineer Harold Bloomgren Jr. outlined multiple options to the group, noting the positive and negative aspects of each choice. The township plans on needing at least $4 million to complete the project. Officials reported in a previous meeting that the project will affect residents in the area of Hedgehog Lane, Totten Hollow, Rob Roy, Red Rock, Lafferty Hollow, Looker Mountain Trail, South Kendall Avenue and Rew.
Bloomgren noted the extension will connect more than 350 homes. According to Supervisor chairman John Sullivan, currently the number of sewer hook-ups in Foster Township is “just shy of 1,800.”
However, each option holds enough uncertainty that it isn’t clear which would be the best choice for the township. “There are no crystal balls,” said Bloomgren.
Among the choices are taking out a PENNVEST loan or taking out a bond.
PENNVEST would likely be the cheapest option. Bloomgren estimated the township would pay an average interest rate of 1.56 percent over a period of 20 years, making a monthly payment of $19,407. However, Bloomgren said that applying for a PENNVEST loan does not guarantee the township will be granted one.
Bloomgren explained that PENNVEST officials are seeing a backlog of sewer projects, and a point system is used to determine which projects take precedence. He is concerned the project may not score high enough this year to beat out other projects. If the township takes the time to apply through PENNVEST but is denied, the project deadline may not be met.
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