Northampton Borough Council on Thursday took another step forward in obtaining $2.5 million from bond receipts.

The money will be spent on street, park and playground equipment and an addition to the central fire station, and will result in an outstanding loan.

Borough lawmakers approved a resolution for expenses to be paid out of the borough's general fund that eventually will be recouped from proceeds of the bond issue. The $2.5 million bond issue includes a $1 million wrap-around loan approved earlier which was used to purchase the fire department's ladder truck.

Initially, it was the borough's intention to enter into a loan agreement with PNC Bank for the $2.5 million.

"Our proposed wrap-around loan in the amount of $1.4 million from PNC Bank has run into a snag," borough Manager Gene Zarayko advised council. "PNC Bank, which we have been doing business with for approximately 100 years, has put some language into the agreement that was not suitable. Therefore, we are back to the bond issue and the closing for the bond issue would be May 5, 2013. We expect the interest rate to be somewhere between 1.6 percent and 1.67 percent."

The bond issue is for a 10-year repayment plan. Low interest rates played a role in the borough going forward with the issue.

Once settlement is finalized, recommended projects funded by the money can begin. Most of the projects, however, will first have to go out for bidding.

In other business, Councilman Ed Pany, Atlas Cement Museum curator, reported receiving a $250 quarterly donation from Keystone Cement Company.