Mayor Joe Schember has presented an overview of the proposed lease pre-payment agreement with the Erie Water Authority.
This comes after the City of Erie announced a more than $3 million shortfall in the 2020 budget.
According to Mayor Schember, two new parts of the agreement include:
- The water authority agreed to pay the city an upfront closing fee of $2.5 million.
- The city will pay the water authority an additional $350,000 per year to help offset the additional reserves that are required by their new loan.
“The mayor had mentioned possibly taking $80 million and possibly putting it on debt reduction .There are other alternatives that maybe we can put in our water reserve money, get some interest money for that, that way we can still have that steady income coming in that we would be losing in the lease agreement.” said Jim Winarski, Erie City Council president.
Council will have a study session on this deal on August 14th beginning at 11:00 a.m.