Lansdale officials are considering a 2 1/2 million dollar bank loan that would be used to fix Line Street and portions of Whites Road as well as Third Street between Cannon Avenue and Valley Forge Road.
The loan would be issued at an interest rate just under 2.6 percent and repaid over 15 years. Council Member Jason Van Dame says in this case borrowing money from a bank makes more sense than issuing bonds.
“The nature of the financial markets and the amount of money that we’re in need of the bank loan, for lack of a better word, the cheapest way to go. It’s the most beneficial to the Borough to go that route.”
The bank loan would increase the debt service payments of the Borough by about 200,000 a year. It already stands at just over two million dollars annually.