Emmaus currently has $3,539,628 cash on hand from the sale of the property on Minor Street to pay for the renovation project.

The financing still needed to cover the project ranges from $5,542,567 to $7,639,292.

It was shown grants for municipal buildings are not available, as they are reserved for volunteer ambulance and fire departments. Emmaus’ departments are paid. A grant for the exhaust capture may be available since it is a legal requirement to install.

Council Vice President Chris DeFrain said financing will most likely result in a tax increase for borough residents. He stressed decisions will be made in the future to try and work to eliminate the tax increase. DeFrain also said a financing plan should be looked at as if they were a business and not at an individual level.

Two ways to finance the remaining balance are a bond issue or a bank loan.

“If a bond is close to $10 million, rates are extremely attractive right now,” DeFrain said.

He gave several examples of local school districts and the low rates associated. He projected a bond for them would land under two percent.

Bank financing could be a 30-year loan, but the banks are generally only going to fix the interest rate for five to 10 years. Five-year fixed rates range from 1.4 to 2.1 percent. 10-year fixed rates range from 2.75 to 4 percent. If pursuing one of these plans, dependent on the interest rate, budget cuts will be needed if the borough does not want to see a tax increase.

The option of combining the borough’s current bank loan with the new financing was presented as a good option to save money. The current bank loan totals $3,382,000, with a projected payoff date of Aug. 15, 2026. Combining the prior loan with the new financing option would stretch the length of time but result in lower payments.

DeFrain projected if the borough can get the estimated low rates and combine the prior loan and new financing options, there may be no tax increase. DeFrain continued with additional options for how the bond financing could be used to pay for an additional sewer project, as another sewer loan was expected to be needed later.

DeFrain said there is a possibility for no tax increase if they were to pursue either recommended financing options, then consolidate with their prior bank loan.

Borough Manager Shane Pepe presented what a tax increase may look like. Currently, Emmaus’ tax rate is a total of 7.4115 mills, with a total tax revenue of $5,936,407. The average property owner pays $1,193.99 in total taxes per year.

If Emmaus borrowed the low estimate of $5,542,567 for 25 years with an initial five-year fixed rate of 1.4 percent, the average homeowner would see an increase of $52.84 per year. With the same plan, if they borrowed the high of $7,639,292, the average homeowner would see an increase of $72.82 per year. The 10-year plan projected an extra $10 per year more than the five-year plan.

“A bond issues seems to be the cheapest route to explore,” Pepe said.

Pepe also said this is beyond his scope of work and a financial adviser and bond counsel will be necessary. He mentioned there may be other options, or perhaps a separate loan can be taken out. Council will need to discuss this at the next public forum.

At the conclusion of the meeting, Pepe presented all the options council can choose on this renovation project. There were eight options.

Option #1: Do nothing

Option #2: Do everything

Option #3: Do only borough hall

Option #4: Do borough hall and central station

Option #5: Do borough hall and the police station

Option #6: Do only the police station

Option #7: Do only the central station

Option #8: Do the central station and the police station

Pepe believed option #1 to be disappointing since they have had zoning officers and engineers examine the current borough buildings and explain they are “severely deteriorated” and “significant code compliance issues” need renovation. However, if nothing is done, Pepe suggests taking the money from the sale of 33 E. Minor St. and paying off the debt for the upcoming sewer project.

Option #2 would be the most expensive and require the township to follow one of the recommended financial plans. However, it will bring the municipal buildings up to code and enhance the ability of the borough and their emergency teams overall.

Option #3 would cover borough hall. This would allow for the borough to cover most of the funds and a likely smaller amount of financing will be necessary for additional costs. This project estimates $4,021,820 to $4,490,445 in total costs.

Option #4 would cost between $7,387,845 to $8,260,470. However, these are estimated prices based on discussions with engineers.

Option #5 would total $5,720,425 to $7,413,150 for the borough hall and police headquarters.

Option #6 ranges in price from $1,893,550 to $3,117,650 since there are three concepts for the police station.

Option #7 for the central station would total $3,781,250 to $4,185,250.

Option #8 for police headquarters and the central fire and ambulance station would cost an estimated $5,772,950 to $7,401,050.

Pepe presented additional decisions council needs to make including: a decision on a project manager or a project management firm, relocation of borough hall employees expected to last a year, the garage project and a decision on the different concepts presented for police headquarters.

It was stated several times there may be additional projects needed in the future and costs need to be evaluated on what should be addressed in priority.