The cost to renovate Pennsburg's municipal building, located at 76 West Seventh St., has increased significantly. On Tuesday, council voted unanimously to apply for a supplemental loan worth $650,000 with the U.S. Department of Agriculture.

            The members also approved a motion to apply for an interim loan in the amount of $1.950 million, the total cost of the project. Following the 11-minute meeting, engineer John Rundy explained that the scope of the project has not changed.

            According to the engineer expected construction costs, based on other projects, have driven up the cost. Rundy cited a significant jump in mechanical and electrical expenses.

            The municipality hopes to utilize a federal grant to help defray the additional costs. The members voted to direct Rundy and Administrative Manager Lisa Hiltz to apply for a Redevelopment Assistance Capital Program (RACP).

            The engineer said he will apply for $1.950 million. According to Rundy, the grant requires a 50 percent match. He argued the renovation project could have a good chance to be chosen since it has already been fully engineered, and that the borough has already acquired the required match from the federal agency.

            Projects that have a cultural, civic, historical, regional or multi-jurisdictional impact and generate substantial increases in employment, tax revenues or other measures of economic activity are eligible for a RACP, according to information posted on the Pennsylvania Budget Office's website. It states that grantees must be either a general-purpose form of local government unit, any public authority, a federally designated Local Development District or an industrial development agency.

            Rundy said he was not sure when the window to apply for the grant would open. He did not know when it would be awarded. According to the engineer, the next step is to get the municipality on an approved list.

            "The situation is very fluid," Rundy said.

            Council voted to spend $22,925 to complete a base repair of Dotts Street from the municipal building to the borough line. The members approved an action item to pay Spear Excavating $15,432 to complete the work.

            The municipality will spend $7,493 to purchase the materials. The work will be completed as soon as the contractor can schedule it, according to the council president.

            Municipal officials will hold a dedication ceremony for the tot lot, currently under construction near the municipal building, at noon on June 10.

            Vice President Patrick Suter and Member Adam Krisko did not attend the meeting. Hiltz was also absent.

            Council held an executive session Monday on Zoom to discuss the borough's lawsuit with East Greenville and an additional item of litigation, according to the council president. She wrote in a text message that no decisions were made.