While Macungie Borough Council is continuing to look into the costs and benefits of a loan versus a bond for capital financing projects, it's still in early stages. Council president Chris Becker said they are doing the right thing in being prudent and taking their time. Council member Joe Sikorski continued to urge council to consider a loan because of low interest rates, but Jean Nagle questioned the plausibility of paying on a million dollar loan.

The projects involve the reconstruction of Lumber Street in agreement with the construction of the new Devine School there, and putting in a traffic light at Cotton and Main streets. At 6:30 p.m. April 1, council held a workshop with financial advisor Gary Pulcini of VALCO Capital Ltd., who proposed that the borough apply for a non-revolving line of credit to the tune of $1 million (a round-up from estimated costs of $960,000). Pulcini will draft RFPs to banks and send them out at the end of the month, expecting responses by May 15.

Borough Manager Chris Boehm spoke out at the workshop in favor of taking out a bond over a loan because of the extreme difficulty of coming up with the money for the annual payment of a loan. Boehm acknowledged later, when Lynn Walker questioned whether the projects were necessary, the projects have to be done now if the borough does not want to pay more down the line in higher rates or the cost of separating the projects.

Pulcini is weighing options as council raises questions, however. It may be possible to structure the loan that money is drawn upon in increments, or not at all for the first two years of the loan, avoiding higher interest payments. Several council members were interested in this option of not using the money right away. In a non-revolving line of credit any amount drawn on cannot be renewed; only what remains from the initial amount of the loan is available for drawing.

Walker asked whether the cost of financing to taxpayers could be provided, and Sikorski offered some fast numbers: assuming an $85,000 annual payment for the loan exclusively, residents of Macungie could expect a 12 to 13 percent increase in taxes a year based on a 15-year amortization as discussed in the workshop before the council meeting. Sikorski stressed later this was a very general estimate. The numbers vary widely depending on rates and the term of the amortization.

Becker also raised discussions on Spruce Street's three-acre walking park. Council would like to see a group of residents, and possibly some council members, come together to discuss the idea of turning the park into a dog park, including the necessary questions of clean-up and maintenance. The borough is open to suggestions and alternatives. Cindy Hartzell, administrative assistant to the borough, reported Upper Macungie and Lower Saucon have dog parks that are largely self sufficient, with puppy promenaders diligently cleaning up after themselves.

Council was alerted of a "chronic battery problem" with the police department's vehicles due to the newly installed GPS units and many were hearing it for the first time. Becker said he knew of the problem from the chief but no one else on council had been apprised of it until it was pointed out by business owner Tim Romig in public comment. Romig says one of the vehicles died at his property on Race Street. Boehm admitted she knew of one vehicle having problems but the borough mechanic had not confirmed it was linked to the GPS units.

Council approved several commission appointments Monday evening. John Horner has been reappointed to Zoning Hearing Board for a 3-year term; John Yerman to Planning Commission for a 4-year term; and Dorothy Kociuba for a 6-year term on the Civil Service Commission. All three commissions still require one member and council has urged participation from residents of Macungie. Becker suggested approaching the commissions themselves to find suitable candidates, since, he argues, they are the experts on who would be qualified to fill the role.