NUANGOLA — The sewer authority acted Monday night at a special session to approve a loan resolution involving $4,472,000 with the U.S. Department of Agriculture for the sanitary system now being installed in the borough.
The resolution coincides with a financing package with the USDA which is intended to repay a $4 million bridge loan obtained from the Fulton Bank of Lancaster.
The Fulton loan has provided the authority with capital to pay for construction costs incurred with the project’s two major contractors, the Wexcon Co. and Doli Co., as well as the project’s engineer, Quad3 Group of Wilkes-Barre.
At present, Ray Shirk, authority chairman, said Wexcon is on target to complete a major phase of the system by previously established deadline of Aug. 15.
Overall, completion is scheduled for Sept. 15.
The resolution is intended as a public notice that the authority is incurring indebtedness with the USDA.
Another phase of the total financing package involves a grant of over $4 million from the USDA and over $800,000 in publicly assessed tap-in fees in order to meet a projected cost of $9.3 million for the system.