At its May Council Meeting, New Britain Borough Council approved borrowing up to $1 million for the purpose of roadway improvements based on a plan developed by the Borough’s Financial Advisory Committee. The specific repairs to be implemented are to be determined, but will improve local roadways throughout the Borough. It will be paid using existing revenues dedicated to roadway maintenance and will save costs in the long term.
The borough is currently collecting research (such as core samples) and working on a roadway study to determine the specific repairs. Work is expected to begin in late summer 2017 and be completed in the summer of 2018. State roads, such as Butler Ave and Tamenend Ave, will not be included.
This borrowing will allow the Borough to do all the work at once, and pay off the loan using these funds before new major repairs are necessary. In the interim, the borough will do regular maintenance work on the roadways to keep the roads in top shape and save on future repair costs.
The borrowing is a ten year loan from the First National Bank of Newtown, with a fixed interest rate of 2.1% for the first seven years, with a variable rate based on 75% of the Wall Street Journal Prime Rate (capped at 4.75%). Borough Council selected this vendor after a competitive bidding process facilitated by a consultant (Public Financial Management) to ensure the best possible interest rate and loan terms.
As more information is known, the Borough will share it on its website, social media, and the ReadyBucks notification system (click here to sign up).