NE Township Enacts Ordinance Incurring Lease Rental Debt for Sewer Project

Notice is hereby given that on August 5, 2024, at 7:30 p.m., at the North East Township Building, 10300 W. Main Rd., North East, PA, the officers of the North East Township, Erie County, Pennsylvania finally enacted an Ordinance (the “Ordinance”). The summary of this Ordinance is a follows:

The Ordinance authorizes the incurrence of lease rental debt to the Pennsylvania Infrastructure Investment Authority, evidenced by the guaranteed revenue note in an amount not to exceed $2,441,314, principal amount to be authorized and issued by North East Water and Sewer Authority (“Authority”) in connection with the construction alterations and improvements to the sewer system facilities, including but not limited to, the Lakeshore Sanitary Sewer Extension located in and about this Township; provides for the payment of associated related costs, fees and expenses; specifies the realistic useful life of the Project; authorizes and directs appropriate officers of the North East Township to take certain actions and to execute certain documents, including a guaranty agreement between the North East Township as Guarantor, the Authority and the Pennsylvania Infrastructure Investment Authority; Approves the form, maximum guaranteed amounts, and sources of payment of the guaranty agreement, and pledges the full faith, credit and taxing power of this Township in support thereof; creates a sinking fund in connection with such guaranty obligations and appoints a sinking fund depository and provides for the repeal of all inconsistent ordinances or parts of ordinances.

A copy of the full text of the proposed Ordinance and Guaranty Agreement approved by this Ordinance may be examined by any citizen in the office of the Secretary of the local government unit at 10300 W Main Street, North East, Pennsylvania, on any business day (except Saturdays and Sundays) between the hours of 8:00 A.M. and 4:30 P.M., prevailing time.

Under the approved Guaranty Agreement the maximum annual debt service payments on the guaranteed revenue note of $2,441,314 that are guaranteed by North East Township will be $11,227.46 per month and $134,729.52 per year with an interest rate of 1.00% for loan years 1 through 5 and $11,851.18 per month and $142,214.16 per year with an interest rate of 1.743% for loan years 6 through maturity. The term of the Loan is twenty (20) years.

This Notice is given in accordance with the requirements of Section 8003 of the Pennsylvania Local Government Unit Debt Act.

Erica Carlstrom, Secretary
North East Township
10300 W. Main Road
North East, PA 16428

Timothy S. Wachter, Esquire
Knox, McLaughlin, Gornall & Sennett, P.C.
120 W. 10th St.
Erie, PA 16501

Related article with copy of ordinance:
NE Township to Consider Ordinance Authorizing Lease Rental Debt for Sewer Project