County to refinance 2007 bond issue at lower interest rates
Washington County commissioners Thursday took a step toward refinancing a 10-year-old bond issue at lower interest rates, hoping to save taxpayers more than $800,000 in interest payments over the next several years.
Nick Falgione III, a financial adviser for PNC Capital Markets, Pittsburgh, Thursday discussed a proposed ordinance the commissioners later adopted to advance the proposed sale.
Falgione expects Washington County will maintain its Moody’s Investor Services Aa2 rating, which he called a very strong, low-risk rating reflecting the financial stewardship of the county’s leaders.
Sean Garin, bond counsel at the Dinsmore law firm’s public finance practice group and a Washington County resident, told the members of the board he expects the sale of bonds in about two weeks, “as long as the savings target is met.”
Joshua Hatfield, who became county finance director earlier this year, said if the county shuns further borrowing, it would be debt-free by 2034. Washington County’s Act 13 funds on wells tapping natural gas and oil from the Marcellus Shale, royalties and leases from wells producing on and beneath county-owned land place the county in an enviable financial position.
Moody’s pointed out last year that the Washington County Health Center was draining resources as it continued to lose millions of dollars since 2012. The commissioners have since decided to seek a buyer for the health center in Arden, Chartiers Township, a process that the county hopes to complete before summer’s end.
The total original issue from 2007 included both borrowing and refunding. The 2017 issue is solely a refunding.
In 2007, the county needed about $6 million to pay for improvements in the 911 call center and public safety department not covered by a $9.3 million state grant; repair of the courthouse roof; development of the north side of the county airport and the building of three new hangars; replacement of the Hanlin Station railroad bridge on the Panhandle Trail; and improvements at both Mingo and Cross Creek county parks. The Washington County Authority closed out its loan pool bond fund, begun in 1999, in 2007.