Council approves loan agreement, pension plan contribution

By: 
Amy Cherry
Staff Writer

St. Marys City Council unanimously approved to authorize the city to enter into a $1 million loan agreement with the Pennsylvania Infrastructure Bank, which is used to fund city paving projects.
City Manager Tim Pearson explained every five years the city takes out a PIB loan of $1 million and adds that to the typical $300,000-$400,000 allocated for normal base repairs done on city roads. In the fifth year the city puts a top coat on the roads, which they completed this year across the city at a cost of $1.3 million.
“The PIB loans allows us to have the additional funds to complete that final paving on the roads that we have prepared in the previous four years,” Pearson said.
He added at the end of this year the city will have paid off one of the previous PIB loans. The loans are good for 10 years therefore at one time the city has two PIB loans listed on their books.
The city has been utilizing the five-year PIB loan process since around 2005.
Deputy Mayor Chris Pletcher, also a member of the finance committee, noted the city does draw on the liquid fuels tax in order to cover the payment for this PIB loan.
Council also unanimously approved the 2021 Minimum Municipal Obligation for pension plans, a report which is required to be submitted by the city each year.
This year $318,100 is the amount needed to put into the 2021 budget for pension costs which includes a $200,505 for the police pension and $117,595 for the non-uniformed employee’s pension.

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