Logan Township's refinancing of a 2008 bond will yield a $446,000 savings, much of which is required to be spent during the next three years.
"You can't put it in salaries," bond counselor Patrick Healy advised supervisors Thursday night. "What you spend it on has to have a useful life."
Healy named paving roads as a possibility. Supervisors mentioned replacing a culvert, building a bridge and using the money to buy equipment.
Chairman Frank Meloy suggested the township staff come up with a list of suggestions for supervisors to consider, and he promised that the board will be judicious in making selections.
"It's once and done money," Meloy said. "Just because it's available doesn't mean we're going to go out and buy, buy, buy."
Supervisor Jim Patterson said he might be interested in spending a portion of the $446,000 in the first year, then waiting until the second or third year to consider other expenses.
"There's no reason to go out and spent it all right away," Patterson said.
Supervisor Joe Metzgar said he would be inclined to consider using the $446,000 toward some sort of "budget buster" expense.
"I don't think we're going to sit on this money for three years," Metzgar said.
Manager Tim Brown said the $446,000 equates to four mills of real estate tax.
But unlike real estate taxes which generate revenue annually, this money is available only because of the refinancing and must be spent in accordance with related restrictions.
Within the next three years, the township should have spent at least 85 percent of the savings, Healy said.
Altoona Mirror Staff Writer Kay Stephens is at 946-7456.
