STONE HARBOR – The Borough Council has voted to issue $10.4 million in bonds to finance community projects. Most of that, $7.2 million, is for general improvements to municipal facilities and will be repaid by taxation; the remaining $3.2 million is for the water-sewer utility and will be repaid through fees paid by utility customers.
In a discussion of the 2025 capital plan in July, the council heard presentations by Chief Financial Officer Cynthia Lindsay and Auditor Mike Garcia.
The property tax rate is expected to rise 1.9 cents to fund the new debt, plus bond anticipation notes expected to be issued this summer for projects already completed but not funded.
Garcia said the borough has deferred about $16 million in capital programs, waiting until payments on existing debt create room to take on new debt. However, that smoothing approach to debt is not possible with the 2025 debt increase, because the borough is already at what Garcia called “level debt service.”
Most of the $7.2 million in new debt – about 60% of it – will go toward improvements in the stormwater drainage system. Other money will go toward improving streets, upgrading parks and playgrounds, and improving municipal buildings and grounds to deal with flooding.
The new borough debt also includes $3.2 million for work on the water and sewer systems. The financial arrangements require making last year’s increase of $125 for each of three quarters permanent for all four quarters, and then increasing that by about $50 per quarter once the new debt is issued.
In addition, the council approved spending $330,000 from the capital improvement fund for ballistic vests, equipment for public works, flood master plan development and upgrades to various public buildings and grounds.
The plan is part of an effort to bring the borough’s debt under control and reach a new tier of stable, level repayment so that future debt will not require tax increases. The effort has also included canceling significant levels of authorized projects that haven’t yet materialized.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
