Sheffield Township is scheduled to spend the next 20 years making payments on a new loan, but its still for less than initially anticipated.
On Oct. 15, the Sheffield Township Supervisors adopted ordinance number 155, which included official recognition of a negotiated bid of $611,916.89 for engineering costs and acceptance of a guaranteed revenue note covering the bid cost through the Pennsylvania Infrastructure Investment Authority, also known as PENNVEST.
The more than $600,000 covers the costs of design and planning for the sewer system upgrade project proceeding in the township.
The final guarantee note figure is $113,083.11 less than the $725,000 PENNVEST originally approved the township to receive to finance the work.
The guarantee sets up a monthly payment of $2,814.17 over the course of 20 years. An annual interest rate of one percent brings total repayment to approximately $675,400 over the life of the loan.
The nearly $8 million cost of the actual project work is being funded in part by another $5,513,571 PENNVEST loan and in part by a $2,256,712 PENNVEST infrastructure grant. The loan for project work is also being repaid over 20 years with a one percent annual interest rate.
A number of online loan calculators produce a monthly payment amount of approximately $25,350 on the larger PENNVEST loan. This results in total monthly payments of just under $31,000 for both loans involved in financing the sewer upgrade project. Representatives of Sheffield Township were unavailable to confirm this figure.