2012-09-27 / Local & State

Town Takes Loan To Pay Flood Contractors

WEST PITTSTON, Pa. (AP) – A northeastern Pennsylvania community ravaged by flooding from Tropical Storm Lee is taking out a risky $2.5 million loan to pay contractors who've gone unpaid for a year since working on the cleanup effort.

The Wilkes-Barre Citizens’ Voice reports the borough will use the tax anticipation loan from the state Department of Transportation to pay contractors who cleaned up 900 homes damaged by last September's flooding.

But borough officials say taxpayers would be on the hook for part of the loan if it doesn't get government approval for the full $2.5 million in aid.

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