A “Cobra-head”-style streetlight along N. Front Street in Harrisburg.
Harrisburg’s plan to upgrade all its streetlights with long-lasting LED lights should begin later this month as the City Council last night approved funding for the project.
Council voted unanimously to borrow $3.2 million from M&T Bank for the LED conversion project, the city’s first major borrowing since the financial crisis shut it off from the credit markets. The eight-year loan carries an interest rate of 3.55 percent.
Council then voted unanimously to contract with The Efficiency Network, based in Pittsburgh, to perform the citywide installation of about 6,000 lights.
The administration estimates that the upgrade will save the city about $500,000 annually in energy costs, which should cover the cost of the financing. As part of its contract, The Efficiency Network guarantees the savings for a 10-year period.
Mayor Eric Papenfuse said much of the work would be done this fall, but probably would not be completed until early next year.
Council also authorized the administration to apply for a $3.6 million grant from Impact Harrisburg, a nonprofit set up as part of the city’s financial recovery plan to assist its infrastructure and economic development efforts. Impact Harrisburg is in the process of hiring an executive director, which it must do before considering applications for grants.
If Harrisburg receives the money, the city would pay off the loan early and use the savings from reduced energy costs for other purposes, Papenfuse said. The loan carries a prepayment penalty of 3 percent.
The city already has received a grant of $500,000 to offset some of the cost of the LED project.
At the council meeting, Councilwoman Sandra Reid expressed concern over borrowing money following the city’s recent financial crisis and its continuing fiscal struggles and added that the city has been duped before by contractors who did not deliver on promises of benefits. She nonetheless voted in favor of taking out the loan to finance the project.
