Although many people may think that units of government get along about as well as the Hatfields and the McCoys, the reality — especially as it is developing — may be far different than the perception. Counties, in particular, are joining with other local governments and the states to forge new types of intergovernmental partnerships.
Seeking to improve the quality of life throughout their county, Montgomery County, Pa. officials have established a $50 million infrastructure loan program. Over the next five years, loans will be available to all 62 townships and boroughs within the county to assist them in improving, expanding or rebuilding public infrastructure.
Commissioners Mario Mele, Richard Buckman, and Joseph Hoeffel III already have approved $10 million in no-interest loans to 25 municipalities for 47 projects.
Under the guidelines of the program, a formula was established setting a maximum funding level for each jurisdiction. Loans are interest-free, if they are for a term of less than 10 years.
Borrowing for a period of 10 to 20 years will be at a low-interest rate, equal to one-half the rate which the county otherwise spends to borrow funds. All capital construction costs may be financed through the loan program, but associated costs (e.g., construction supervision and inspection) must be funded through other sources.
Loan applications are reviewed by a five-member panel of county government officials. In allocating available funds, priority was given this year to projects in communities with “disadvantaged status.” That condition is determined by income level, housing conditions and tax base trends.
Once those factors are considered, priority is given to multi-jurisdiction projects and public-private partnerships. Projects involving only one community are judged on the basis of their ability to address public health and safety needs.
In Oregon, the governor recently called for an intergovernmental summit of county, city and state officials. Approximately 30 local elected officials and 15 state agency heads spent the day with the governor, hammering out a set of principles of intergovernmental partnership (see sidebar).
Bob Cantine, executive director of the Association of Oregon Counties, said: “I believe the key behind the principles is the belief on the part of the governor and coming recognition by state agencies that service delivery is local. For the system to be effective, it’s their job to serve as a resource to support strengthening of government at the local level.”
(For additional information about the Montgomery County program, contact Steven Nelson of the Planning Commission staff at 610/278-3730.)
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