Schuylkill to benefit from another refinance

By having vigilant eyes on the bond market and opting to refinance, Schuylkill County is again poised to save about $1 million.

In October 2019, the county refinanced its 2012 GO bond issue — series B, 2008 GI bond issue and 2018 GO Note, saving about $1 million in interest expense.

“The latest round of interest rate reductions by the federal reserve last week created a new and outstanding opportunity for the county to refinance the 2012 GO Bond Issue — series A,” Schuylkill County Director of Finance Paul Buber told the county commissioners during a meeting Wednesday. “The current cost for borrowing is at historical lows; it’s been over 60 years since we have seen rates this low.”

The 2012 GO bond issue — series A is about $11.9 million. Refinancing should save the county approximately $1 million in interest expense over 16 years, Buber said.

On the advice of Buber, the commissioners approved three important steps in the refinance process, which are retaining a bond underwriter, hiring a financial adviser and setting up an escrow account. The actions are:

Entering into a fee for service contract with RBC Capital Markets LLC to serve as underwriter. The underwriter will be compensated by a fee that will be set forth in the bond purchase agreement.

Entering into a fee to service contract with PFM Financial Advisors for a cost not to exceed $25,000.

Entering into a fee for service contract with PFM Asset Management LLC for a cost not to exceed $2,500, to establish an investment escrow account.

In additional financial news, Controller Christy Joy presented the Retirement Board Report. The total market value of the retirement fund as of Feb. 29 was $137,960,668. As of March 11, the total market value had dropped to $132,207,944.

“Yes the market is down,” Joy said. “The S&P is down 11%, but our pension fund is only down 5%.”