In somewhat of a surprise, Northampton Borough Manager Gene Zarayko at Thursday's borough council meeting unveiled plans for a $1.4 million bond issue that would pay for a host of capital projects.

Some of these, such as the repaving of Laubach Avenue from 23rd Street to Main Street, are long term.

The high school, an elementary school, community center, library and municipal building are located off Laubach Avenue, making it one of the most heavily traveled roads in the borough.

Some informal talks with council have taken place about putting together a bond issue to pay for improvements that otherwise would not take place.

At least for the immediate future, council did not balk at giving Zarayko the go ahead to continue.

Council was told interest rates are "at an all-time low," explaining the borough could get the funding at 1.6 percent. Council agreed such a favorable interest rate is not likely to be available again in the near future.

Zarayko said the Northampton Borough Municipal Authority (NBMA) took advantage of the low interest rates in refinancing an existing bond issue that resulted in a $1.5 million savings.

"The iron's hot," Council Vice President Robert McHale said.

The bond issue would finance a $400,000 addition to the fire station on Lerchenmiller Drive and provide $300,000 for Laubach Avenue restoration, $95,000 to replace deteriorating concrete on the lower end of Main Street, $100,000 for a new salt shed and $105,000 for playground equipment.

"We have to think outside the box. This will bring us right up to speed to get our town right where we want to be in three years," Council President John Yurish said.

According to Zarayko, the proposed bond issue would include a $1.6 million payoff that remains in a $7 million bond from 25 years ago.

Council was advised the borough would apply for matching funds from Northampton County.

The borough would have three years to complete the projects once the bond issue is in place.

The new bond would add only $21,874 to the borough's debt payments each year over a 10-year span.

Council members Ed Pany and Robert Coleman were not present at the meeting.