Ex-trustee questions $2.7M loan for sewers

The township will make annual debt payments of $48,000 for 40 years.
By MARY GRZEBIENIAK
VINDICATOR CORRESPONDENT
NEW SPRINGFIELD -- A former township trustee is questioning the township's 40-year, $900,000 debt commitment to the $2.7 million Petersburg sanitary sewer line.
Lee Kohler, who served 12 years as trustee before losing a re-election bid in 2003, told Springfield Township trustees Wednesday that the township had agreed originally to take a 2.9 percent U.S. Department of Agriculture loan for $600,000 for the project.
However, that loan was later changed to a $900,000 loan at 4.5 percent interest, which Kohler said will ultimately cost the township $1.8 million.
He said the annual payments at the higher interest rate will be $48,000, not the $28,000 they would have been at 2.9 percent.
Though income from annual tipping fees from the local Waste Management landfill had been cited as the source of funds for the yearly payment, Kohler said there is no guarantee the landfill will exist 40 years from now.
He pointed out that the current sewer line, which will be extended for the Petersburg project, was paid for by developers.
However, another resident pointed out that Petersburg doesn't have property to attract condominium owners who would pay for a sewer, and that Petersburg residents are experiencing problems from septic contamination.
Kohler responded, "I'm not opposed to a sewer in Petersburg -- I'm opposed to my grandchildren having to pay for a sewer in Petersburg for the next 50 years."
Trustee Jim Holleran said he "had an awful lot of anguish" over the 40-year loan. But he added that former Mahoning County Auditor George Tablack "came out and assured us it was workable."
Other details
Holleran added that Mahoning County Sanitary Engineer Joe Warino told him that the township is responsible for the loan but that "funds are available."
Holleran agreed with Kohler's statement that a meeting with county officials is needed to discuss the project and the township's commitment to the loan.
Trustee Robert Orr, who was elected in November, noted that Holleran had been a trustee for a short time when the agreement was made in 2004.
Trustees had agreed in February 2004 to borrow $600,000 at 2.9 percent in case the Mahoning County Solid Waste District would not come up with its $623,000 share for the sewer project. That loan was later changed to another type of loan at a different rate.
Trustees weren't sure why the loan was changed. Two of the trustees just took office in January.
Holleran said the project is in the process of being bid.
They also approved a lease agreement for $14,208 to Ford Motor Credit for leasing two vehicles for the police department through a state co-op.