DUNMORE - The borough would be broke if council had not taken out a $5 million loan to shore up its pension plans in December, two councilmen said Monday.
Speaking at Monday's meeting, the councilmen were responding to a statement business consultant Richard Dreyfuss made to The Sunday Times when he compared taking out loans to cover pension costs to paying off a Visa with a MasterCard.
The article was one of three stories in The Sunday Times that explored the borough's struggles to pay for its pension obligations.
"If we didn't do what we did, we would have zero funding for infrastructure," said Salvatore Verrastro, council president.
Michael McHale, council vice president, said the borough was "bankrupt three years ago," and officials had to be creative to get through the crisis.
Mr. Verrastro said if the borough had not taken out the loan and refinanced its debt at "a ridiculously low rate," money would not be available for roads, everyday expenses and vehicles like the six new police cars that arrived Monday.
The council president said the next infrastructure item they will address is replacing borough plow trucks that repeatedly broke down last year.
Also at the meeting, Councilman Michael Hayes estimated 32 people have volunteered to join a neighborhood watch program, and he hoped they would approve a committee to oversee the watch's development at its next meeting.
Mr. Verrastro said too many details, like organizational structure, still need to be worked out for the council to formally recognize the crime-watch initiative yet.
Police Chief Sal Marchese expressed interest in the idea, saying "the more eyes out there, the better for us."
Council also approved what Mr. Verrastro estimated were $20,000 in computer and software upgrades for the Police Department and the annual summer recreation program, which has a tentative starting date of July 8.
Contact the writer: kwind@timesshamrock.com; @kwindTT on Twitter