Tamaqua’s wastewater treatment plant needs significant upgrades.

To help pay for the project, the Tamaqua Borough Authority will receive $20 million in a mix of a grant and a low-interest loan from the Pennsylvania Infrastructure Investment Authority. It is also seeking revenue bonds to fund the proposed work.

Tamaqua Borough Council recently adopted an ordinance to authorize and approve Guaranteed Sewer Revenue Bonds in the amount of $17 million for the authority.

The action means that the borough is backing the bond in the event the borough authority — which will be the borrower — is unable to pay on the interest or principal.

“As you probably are aware, the (Environmental Protection Agency) has a consent order in effect that essentially requires the effective total replacement of that plant,” explained Attorney Marty Cerullo of Bowe & Odorizzi Law, which serves as borough solicitor and bond counsel for the borough and borough authority.

Cerullo said the borough authority has already acted to put financing in place for the project, which includes the PENNVEST funds and bond issue.

“A substantial portion of the project will be funded by a (PENNVEST) grant so that doesn’t have to be repaid. The portion of the PENNVEST funding that is a loan is very low interest,” he explained.

As for the amount of the bond, the final numbers will be determined in October. Cerullo said borough council was acting on a parameters ordinance for the bond, meaning that the $17 million will be more than sufficient to cover the remainder of the project.

“That number will be finalized and brought down between now and Oct. 8 when the final pricing of the bond will be,” he said.

The debt, Cerullo noted, will belong to the borough authority — and not borough council.

“What borough council is being asked to do is issue a guarantee” so that if the authority can’t repay the funds, the borough will be tapped, he said. The debt will also be secured by bond insurance.

Cerullo said the borough authority should be able to generate the money needed to repay the debt.

“The borough council should not have to pay but the guarantee is in place in case that is necessary,” he said.

The state Department of Community and Economic Development must approve all actions before the bonds are issued to the borough authority.

Council voted unanimously to approve the guarantee on the bonds.

Members noted that it was something they had to do.

“It’s just that we have no choice,” Councilwoman Kathy Kunkel said.

“We’re in a position where this isn’t what we want to, it’s what we have to,” Councilman Ron Bowman said.

Of the PENNVEST funds, which were announced in April, more $12.2 million will be a grant, and the remaining $7.8 million will be a low-interest loan.

The funds will be used to help the plant operate more efficiently by replacing aging and outdated equipment. The planned upgrades will also prevent sewage overflows from polluting the adjacent Little Schuylkill River.

The planned improvements to the wastewater treatment plant include constructing a new headworks building, rehabilitating the primary and secondary clarifiers and the aeration tanks, converting two aeration tanks to swing equalization basins, installing a new flash mix tank and a new magnesium hydroxide system, replacing the aeration blowers, and replacing the chlorine gas system with sodium hypochlorite disinfection.