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New SR council agrees to return project money

Talk of tax cut put off to 2019

SLIPPERY ROCK — Borough council members voted to pay $225,000 toward the loan taken for the diminished Gateway Project.

Council unanimously approved paying back $225,000 on the principal of a $750,000 loan for the project. The payment brings their projected payoff date to 2028 instead of 2037.

Earlier this month council members canceled the project's final phase, which included the building of a parking lot along with other amenities at the site of the nearly demolished First National Bank building.

The cancellation freed up about $350,000.

Itzi Meztli and a few others had considered paying back $250,000 at first.

“We definitely need to pay a chunk of the money back on the loan,” he said.

But Tom McPherson and others compromised at $225,000 because it would leave a little more than $100,000 in case the intended contractor, McElroy Paving, pursues a lawsuit over the canceled contract. The funds could also be used for making the site presentable after demolition.

“The chunk of money was borrowed for a specific reason, and if that's not going to happen, then give it back,” McPherson said.

While council members seemed to agree more than previous weeks, they split over the issue of the 2018 General Fund budget, which members reopened at the beginning of their term.

Council voted unanimously to close the budget because of the variety of opinions on the issue.

Council President Russell Karl and Gene Allison favored lowering the millage rate by two mills, while Denton Zeronis offered up a ½-mill reduction. Others wanted to leave millage alone until next year.

Karl said a short timeline to finalize the budget made anything less than a two mill reduction more problematic than helpful.

“If we're going to reduce it by half, we might as well just leave it,” he said.

Chuck Brochetti, who now serves on the borough's garbage committee, gave his input as a resident. Brochetti said he also talked to other residents who said they would be understanding if council did not change the tax rate this year.

“I feel that it would be premature to give a tax cut at this time before getting a lay of the land,” Brochetti said.

Mayor Jondavid Longo said he was disappointed in the council's decision. He said incoming council members and he campaigned with the people in mind and helping reduce the tax burden.

“The time for being prudent should be when raising taxes, not when lowering them,” Longo said. “I truly hope these gentlemen are as confident as they seem that they can revisit this issue in 2019.”

Despite the mayor's disapproval, council members appeared to click Tuesday night, after some conflict and growing pains in the first few meetings.

At last week's meeting Ron Steele opposed the appointment of Denton Zeronis to the two-year seat. Steele said he feared he and fellow councilmember Tom McPherson's opinions would not be considered by the four new members, who all ran under the same platform during the election.

Steele said he felt more involved and validated Tuesday night.

“It looked as if we could work together and sit down and talk things out,” Steele said.

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