FARRELL Council lowers rate for revolving loans

The city tax collector could be getting a $1,250 increase in pay.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
FARRELL, Pa. -- The city is lowering the interest rate on its revolving loan program set up to assist new or expanding businesses in the city.
The $1 million fund originally had a 3-percent interest rate, but city council voted to raise it to 5 percent about three years ago when commercial loan rates were rising.
It was designed as a low-interest loan program that could be tapped for commercial or industrial development.
However, just after the city raised the interest rate to 5 percent, commercial rates began to drop and now developers can get commercial loans around the 5-percent mark.
There hasn't been much interest in Farrell's loan program for the past year or so, and Mayor William Morocco told city council Monday that the rate should be reduced.
"We had a couple of inquiries," said City Manager LaVon Saternow, noting that interest disappeared when those making the inquiries found out the interest rate was 5 percent. Council voted unanimously to reduce the rate to 3 percent. The city has given loans as big as $250,000 from the program in the past.
Other action
In other business, council passed the first of two required readings of an ordinance raising the annual salary of the Farrell tax collector from $27,050 to $28,300 for the years 2004, 2005, 2006 and 2007.
The person who fills that slot is also the city's elected treasurer, a post held now by Kathleen Multari. The treasurer's job is up for election this year and the salary can only be adjusted before the primary in an election year.
Council's approval of the raise won't be automatic. The tax collector collects real estate taxes not only for the city but for the Farrell Area School District and Mercer County as well.
The salary for the tax collector portion of the job is split among the three taxing bodies, so the school board and county commissioners will have to approve it as well.