Wednesday, November 28, 2012

Another Loan

In the last Delmar Utility Meeting, the town manager said the town of Delmar, Delaware would apply for another loan from the Delaware Office of Drinking Water.  The loan would be in the amount of $616,890 and it would be used to replace the 4 inch water main on Grove Street with an 8 inch main.  This will require the town of Delmar, Delaware to go to another special election for permission to borrow this amount.  There is some ratio of indebtedness to property of the town that calls for the town to have these special elections when that ratio is exceeded.  Now supposedly this loan will be forgiven once it is taken out so it will be the same as a grant but since it is called a "loan" the Town has to go thru the special election procedure. 

In 2010 we took out a $400,000 loan to replace water main on Delaware Avenue and just two months back we took out a $400,000 loan for the Police department building.  If this new $616,890 loan is taken out and forgiven it will be a good thing but it never-the-less is a "loan" and I wonder how this million or so in the three loans will effect the town credit rating?  Looks like in the loan area the town of Delmar Delaware is following the example of the Federal government.  With a population of 1,597 from the 2010 census and $1,416,890 in loans that comes out to $887 per person to pay off.   The good news is we will have a least a shared part of a Delmar Police Building that will be over a Million dollars for us 1,597 people.

Also at the meeting I mentioned I hoped the special election would be held in Delaware and not like the previous two which were held in Maryland at the town hall.  I feel having to go to another state to vote in a Delaware election is illegal.  I have written Mayor Houlihan about my concerns on this matter and I have contacted the Delaware Attorney General Office about this but have heard back from neither so I assume I have been brushed off by all concerned.    Well I guess I will have to step it up a notch.

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