Limerick to soon be debt free
Supervisor says no tax hike for 30 years
LIMERICK » The township will soon have the distinction of being debt-free.
It’s all thanks to the $75.1 million sale last month of the township’s sewer system to Aqua PA.
That money not only retired all the sewer system’s debt, with a technical exception, but will also pay off the $3.5 million left on the debt for the new public works facility and the $5.2 million the township borrowed to complete the $10.5 million township building.
Both were bank loans and can be paid off any time, said Assistant Township Manager Beth DiPrete, who told the supervisors Tuesday night the move would save $1 million in interest payments.
What will remain is $3 million from a 2015 township bond that cannot be paid off until 2020, she said. Some of that money was old sewer debt and the rest was used to purchase the Linfield Sports Park.
DiPrete suggested, and the supervisors agreed, that an escrow account be set up to make payments on that debt until
2020 when it can be paid off in full.
When that happens, Limerick’s AAA bond rating will disappear because, like a person with no credit cards has no credit rating, a township with no debt will have no bond rating.
The supervisors were unfazed by that prospect.
With all debts paid, the township will still have about $55 million on hand, which it intends to invest in the hopes of using the proceeds of that investment to pay for capital projects and increased costs that come down the pike.
“I don’t see us taking on debt or raising taxes for another 30 years,” said Supervisor Ken Sperring, “so long as future supervisors are as fiscally responsible as we have been.”