Butler County commissioners approved a $9.175 million loan to three municipalities for road and sewer projects.

At their meeting Wednesday, Aug. 26, commissioners adopted a debt ordinance for the loan from First National Bank.

Bond counsel Jamie Inferrera said the interest rate is 4.65%, which is the lowest, with all costs included, among nine proposals submitted by eight banks.

The county will loan the money to the municipalities at an interest rate of 3.15%, and the county will subsidize 1.5% of the municipalities’ interest. The county plans to use about $900,000 in Act 13 money to buy down the rate.

Three of the projects are in Jackson Township. The funding was requested by the Jackson Municipal Authority:

• The township plans to use $2.5 million from the loan toward a $2.65 million roundabout at the intersection of Route 528 and Ramsey Road to improve safety and access to the 281-home Londonderry planned residential development, which sits on about 120 acres along Route 528 near Ramsey Road.

The current intersection has a sharp bend from Ramsey Road to Route 528 that provides limited sight distance for eastbound vehicles on Route 528 turning right onto Ramsey Road.

• The authority plans to use $1.5 million for right of way acquisition for the roundabout project, $1 million to provide water service to the Briar Hill neighborhood and a new development on Zehner School Road, and $1 million for phase three of the Jackson’s Pointe Commerce Plaza development.

• The authority also plans to use $800,000 as a bridge loan to cover tap-in fees and short-term user rate gaps needed to fund the Franklin Road water line district.

The project relies on 191 planned residential units on Pattison Street Extension to keep rates affordable. The new homes will subsidize existing homes needing public water. The loan will fund $3,500 tap-in fees per unit and projected rate gaps during the four-year construction period, with estimated debt of about $46 per unit, per month over 20 years.

Additionally:

• The Summit Authority plans to use $2.5 million for the installation of main sewage lines to serve 314 properties in the Herman area of Summit Township, replacing failing on-lot systems.

The authority will own and maintain the lines, two pump stations and grinder pumps. The project area is from Moran and Schnur roads to the Pennsylvania American pump station on Ziegler Road. The total project cost is estimated at $24.2 million, including the $12 million phase one.

• Harrisville is planning to use $730,000 for engineering services to restore and repair pumps and piping at the sewage pump station on Route 58 and the lift station on Long Lane; and to replace 3.5 miles of a main line from the Route 58 pump station to Pine Township in Mercer County, where the treatment plant is located.