CONNOQUENESSING TWP — Supervisors authorized the township solicitor to draft a resolution pledging to assist the Connoquenessing Township Sewer Authority in paying interest payments on a potential $4 million loan through the Butler County Infrastructure Bank.

The resolution came after Lambert Rosenbaum, vice chairman of the sewer authority, told supervisors that by July the authority plans to apply for the $4 million loan, which would be paid back at a 1.2% interest rate over a four-year period. He said the authority, which is a governmental board independent from the supervisors, would need the township to pay the interest payments on a yearly basis in order to apply for the loan.

He said this option would ultimately be cheaper for township taxpayers than going to a commercial bank, which would likely have a higher interest rate.

According to Rosenbaum, the township could save upward of $180,000 by supporting this plan.

"We’re asking the township to assist us with those payments until we have income," Rosenbaum said. “We won’t have income until the system is built and operational. We’re going to borrow money any way you slice it.”

A portion of this story is shared with you as a digital media exclusive. To read the full story and support our local, independent newsroom, please subscribe at butlereagle.com.