DUBOIS – In a unanimous vote Monday night, the Sandy Township Supervisors approved signing papers for a loan to pay back DuBois City for wastewater treatment.
The loan of $1.75 million is a tax-free competitive rate loan that will take care of back amounts the Commonwealth Court decided Sandy Township owes the City of DuBois for treating wastewater.
The loan will come from National City Bank.
The loan’s 120-day note means that an estimated $20,000 per month in interest will stop accruing for the township. A different type of loan will go into effect after that point.
Sandy Township Manager Richard Castonguay said the note also gives the township time to see if there is a Commonwealth Court decision on an appeal filed by the township.
For now, though, the supervisors have submitted a letter to the Pennsylvania Infrastructure Investment Authority to ask whether some funds from water and sewer service can go toward the loan that will repay the city. The board had previously committed those funds to paying PENNVEST loans.
Although the supervisors approved the loan, several were hopeful that the Commonwealth Court would decide in Sandy Township’s favor.
“I hope the city’s prompt in paying it back when we get a decision from Commonwealth Court,” said Ray Anderson, supervisor.