HILLSBOROUGH: Town seeks low-cost loans from environmental trust

By Audrey Levine, Staff Writer
   Hoping to save about $550,000 in interest costs for two projects, the Township Committee unanimously approved an application for a zero interest loan from the state.
   The resolution approved Feb. 24 authorizes Township Clerk Kevin Davis to submit applications to the state Environmental Infrastructure Trust (EIT) and the state Department of Environmental Protection (NJDEP) for 0 percent financing since the projects are directly related to environmental protection.
   ”We are looking to see if there is an opportunity to benefit Hillsborough with low or no-interest financing for projects,” Mayor Frank DelCore said.
   By applying to the EIT, the township can, if approved, take advantage of the financing for repaving about three miles of roads affected by the Claremont Sewer System project, and for the construction of a 3,000-ton salt storage facility at the Department of Public Works site.
   The applications were submitted prior to Monday’s EIT deadline to apply.
   Mr. Davis said projects approved by the EIT must be deemed necessary for environmental and resident protection.
   Originally, Mr. Davis said, the EIT had $278 million set aside for this fiscal year to distribute to municipalities, but with the recently approved American Recovery and Reinvestment Act, as much as $500 million could be added to the EIT.
   The road improvements, all of which will cost about $1.6 million, will be made to Ann Street, Sunnyside Lane and High Acre, Onka, Craig, Franklin, Claremont and Theodora drives.
   Mr. Davis said that, with or without the financing from the EIT, the township must do the repaving. He said parts of the roads had to be cut out to install the sewers, and the temporary patching done to fix them will not last long.
   In addition, several of these roads have not been repaved in more than 20 years and are long overdue for the additional work, according to Deputy Mayor Bob Wagner.
   ”The residents have been very patient,” he said. “Some of these roads haven’t been repaved since 1987. They need it anyway.”
   The second project being considered is a salt storage facility at the Department of Public Works yard, a project Mr. Davis said the township could begin immediately. He said the EIT is very interested in projects that can begin quickly, thereby opening new jobs.
   According to Department of Public Works Director Buck Sixt, the township’s current storage facility dates to 1982, and only holds about 664 tons of salt. To cover all the roads in town once, Mr. Sixt said, about 250 tons of salt are used.
   ”That’s just for one time,” he said. “But we normally salt before and after the plows.”
   At this point in the year, Mr. Sixt said, the township has used about 2,555 tons of salt, but this does not include what still could be needed in March, November or December. The Salt Institute, he said, recommends municipalities keep on hand 75 percent of the amount of salt used in the previous year.
   Mr. Sixt said the current storage facility is not sufficient to hold all the salt necessary to keep the roads safe. In the past, he said, the township often has had to wait for salt to be delivered, and even had to store additional salt in county facilities.
   With a larger 3,000-ton facility, he said, the township can store more salt, and have it delivered earlier in the season to be ready when the first snow falls.
   ”I don’t see a better time than this with the zero percent financing,” he said. “This is a public safety issue. If the roads are not safe, it does not matter what kind of emergency vehicles we have. It’s a trickle-down effect.”
   After considering several options for facilities, Mr. Sixt said, he is recommending the township purchase one for $331,000, which includes the price of the facility, electricity and other necessities. In a previous capital funding plan, he said, $495,000 had been allotted for a facility that only included the actual building, and not any other needs.
   If the projects do not qualify for the zero interest financing, Mr. Davis said, the township could opt to choose 5 percent financing or do the work in increments. Still, he said, he believes the only thing that could deter the EIT from granting the financing would be the fact that Hillsborough often is considered to be in a very high income bracket for the state.
   No matter the outcome, the members of the Township Committee said that sending in the application is definitely worthwhile.
   ”I understand there is a need for this,” Deputy Mayor Wagner said. “I think we need to apply for this, and we need to be in the running. We will keep our fingers crossed.”