Interest rates were the key concern raised by Bethlehem Township Commissioner John Gallagher during the board’s March 4 meeting to his colleagues about expenditures of over $1 million.

The expenditures are related to items approved in the budget and financed with an equipment lease/purchase agreement of 5 years with First Commonwealth Equipment Finance, a division of First Commonwealth Bank.

The equipment consists of two boilers for the municipal building, and two rooftop units for the community center.

Gallagher raised concerns about borrowing at a rate of 12.8 percent. Commissioner Michael Hudak countered, saying the lease would cover potential maintenance costs during the five-year period, providing some savings, something not accounted for if these items were purchased outright.

Gallagher also questioned the claim of the township borrowing at a rate of 12.8 percent by township Solicitor James Broughal questioned Gallagher about his numbers. Broughal said there’s a yield of 6.28 percent.

With Gallagher unable to locate the paperwork supporting his claim, the board decided to table this motion.

The board is providing a letter of support for Bethlehem Township Volunteer Fire Company’s grant application of up to $1 million to the federal Assistance to Firefighters Grant. The letter will also confirm the township’s commitment to pay the difference.

Chair John Merhottein explained the township was originally committing to a payment for a new firetruck by 2028, but due to the 1,000 day build-out, everything has been changed for 2026.

The meeting ended with a discussion on the Nancy Run Fire Company engine payment options.

According to township Manager Doug Bruce, paying 25 percent upfront would be the best financial option for the township.

Hudak told Bruce to ask Finance Director Andy Freda to start attending board meetings to answer the many financial questions being raised.

In a tense moment, Bruce told Hudak, “I’d be happy to do that. You guys had this information - and on other matters, as a matter of fact - last Wednesday, and I didn’t hear anything from anybody. Andy was here until 6:30 p.m. with the auditors tonight. It would have been nice if somebody had let me know there was going to be questions about these issues.”

By a vote of 3-1, the board agreed to the Finance Department’s recommendation to pay 25 percent upfront for the new fire engine.