Paint Township supervisor Chairman Joe Huff Jr. said the municipality has been approved for a loan from Somerset Trust Co.
Supervisors will wait, however, to release the details of Somerset Trust's proposal until after they meet with 1st Summit Bank. Huff said supervisors are expecting an answer, either way, from 1st Summit Bank today.
"Somerset Trust approved us, but we're waiting to speak with 1st Summit to see what they have to offer," he said.
The cash-strapped municipality's deficit is expected to exceed $350,000 by the end of the year. Barnes Saly & Co., a certified public accounting firm from Johnstown, cited a $168,000 overrun on the police building's expansion as one of the primary contributors to the deficit.
Supervisors plan to raise property taxes by 75 percent next year. The 6-mill increase would include 4 mills for debt service and 2 mills for operating costs and recovery. Huff said taxes could be lowered by 4 mills once the township's debt is paid off.
Supervisors would not reveal the terms of Somerset Trust's proposal Wednesday. If 1st Summit Bank follows suit with a proposal of its own, supervisors will choose between the two offers during Tuesday's regular monthly meeting, Huff said.
"Time is getting short," he added, noting that the loan would need approval from the Department of Community & Economic Development and the Somerset County courts. It could take weeks or months to close on a loan, Huff said.
The township acquired a $75,000 interim loan in September from 1st Summit Bank to sustain operations through the end of the year.