Unity expects bond issue to raise $8M for paving, public works equipment, playgrounds
Mar. 12—Supervisors in Unity have authorized the township's first-ever bond issue to help fund a variety of planned improvements and purchases, and they say the resulting debt service will be covered without raising taxes.
The supervisors on Thursday authorized a maximum bond issue of about $10.7 million but said they don't expect to borrow much more than $8 million.
Supervisor Mike O'Barto said the township is taking advantage of low interest rates to float the bonds and finance proposed equipment purchases along with infrastructure and recreational improvements.
The bonds will have a 24-year term and could carry an estimated interest rate of 2.45%, but the actual figure will be determined when they are issued next week, according to Alisha Reesh Henry, managing director of PNC Capital Markets, which is handling the issuance.
The township's "excellent" bond rating of AA- will help limit the cost of borrowing the money, Henry said. She said the township's outstanding debt of about $457,000 will be wrapped into the bond issue, resulting in a debt service of $600,000 through 2024, afterward decreasing to $515,000.
"Essentially, you will be able to borrow $8 million for less than a $70,000 increase to your annual budget."
The bond issue is expected to close April 15.
"The price of doing municipal business keeps going up every year," O'Barto said. "We, as municipal officials, sometimes have to think outside the box.
"We're bringing Unity Township well into the future, taking care of the needs that we have to. We have some roads that have not been paved in 40 years."
"We want to do the best job we can for the community without raising taxes," said Supervisors Chairman John Mylant.
O'Barto said at least seven township trucks are aging and need to be replaced. He said the supervisors also want to invest in a new excavator and a front-end loader.
Proceeds from the bond issue also could help with stormwater improvements, O'Barto said.
He noted playground equipment in Pleasant Unity dates from the 1990s and needs an upgrade. The township also has applied for a state grant to help outfit the playground next to the township municipal building with apparatus adapted for handicapped use.
Trail grant awarded
The supervisors on Thursday also awarded a contract just under $85,500 to low bidder Derry Construction, for installation of asphalt walkways, to improve handicapped access to a walking trail that borders a small lake adjacent to the township building. The project, which also includes handicapped parking, is being funded through a federal Community Development Block Grant.
Township engineer Dan Schmitt said a new section of trail will be placed between the lake and a guardrail so that those walking around the lake don't have to venture out onto an access road that crosses township property.
Jeff Himler is a Tribune-Review staff writer. You can contact Jeff at 724-836-6622, jhimler@triblive.com or via Twitter .
