MEDFORD LAKES — The borough council took a crucial step last week toward improving its aging sanitary sewer system.
Officials unanimously approved a $9 million bond ordinance at its meeting Wednesday, authorizing the borough to construct and implement a project that will rehabilitate and repair the sanitary sewer system. Work could begin by the end of the year.
The $9 million bond, however, is not expected to be executed by the borough, said Borough Manager Robert Burton. Instead, the measure was part of the borough’s application to secure funding for the project through a low-interest, so-called H2LOan from the New Jersey Environmental Infrastructure Financing Program, said Burton.
The borough expects the project to only cost around $6.5 million, but per a formula set by the state program needed applied for the higher amount. The borough will only be required to pay back what is actually spent, Burton said.
He said at an estimated interest rate of just under 1 percent, the H2LOan will save the borough over $2 million when compared to the average private bond market interest rate of 3.18 percent. With the bond ordinance approved, the borough is nearing the end of the H2LOan application process, said Burton.