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WEST CHESTER—The borough was forced to borrow $2.5 million; otherwise, some employee salaries for December, and well into 2021, would not have been paid.
The loan from Santander Bank, at a 1.25 percent annual interest rate, will cover anticipated borough expenses until property tax revenues are collected in March. Municipalities regularly take out such loans.
The borough chose not to tap into the $8 million reserve fund, or accumulated savings. Doing so would have likely impacted the borough’s interest rate when borrowing long-term.
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Borough officials partly blamed this year’s shortfall on the pandemic. Finance Committee Chairman and Borough Councilman Bernie Flynn pointed at a $1.5 million loss in parking revenue as a major contributing factor in the deficit. ....

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