The Milford Borough Council will hold a special meeting to approve a line of credit from Dime Bank for a road project on West Harford Street.
Borough Treasurer Greg Meyer said the bank is willing to extend the borough a line of credit of about $123,000 at an annual fee of about 1 percent for three years.
“I think that’s a very fair fee for us,” Meyer said.
The Milford Enhancement Committee has agreed to cover the cost of the first year as well as the legal cost.
“Another thing about the letter of credit is that the state requires it to go three years,” Meyer said. “If at the end of first year we can get a letter from the state saying the work has been done satisfactorily, we reduce that line of credit to 25 percent.”
Borough solicitor Anthony Magnotta said the letter of credit requires collateral, and that the borough needs to schedule a special meeting to adopt an ordinance. The borough won’t be able to officially acquire the letter of credit until the Department of Community and Economic Development approves the ordinance, notice, and documentation note.
Meyer has already sent the necessary forms from the Pennsylvania Department of Transportation to the bank, but they can’t close until the borough passes an ordinance and gets the economic development approval.
“It’s going to be a little bit of a process and it may take a little bit of time, but it will be sufficient,” Magnotta said.