To meet a federal mandate, the county will borrow $21.4 million dollars.
The Schuylkill County Board of Commissioners approved a resolution during a work session Wednesday to issue a general obligation bond to finance upgrading the county's public safety communications network to narrowband frequencies complying with Federal Communications Commission mandates. The bonds will also pay for a new roof on the county jail, other infrastructure improvements and possibly buy a building for the Human Services Complex.
"Just as an industry can't afford to stand still, neither can we as a county," commissioner Chairman Frank J. Staudenmeier said Wednesday evening. "It's important that we update our facilities for the future of Schuylkill County."
The resolution also refinances the $1.7 million owed by the county from a 2008 bond, bringing the total debt obligation to $23.1 million.
In December, the previous board of Schuylkill County commissioners set the 2012 budget at $47,989,064. With only $45,362,263 expected in revenue, the remaining $2,640,113 is coming from the unrestricted general fund, which was at $49,689,272.02 as of Wednesday.
Staudenmeier said the board kept the county taxpayers in mind when discussing financing options.
"We do not anticipate a tax increase with this. It's going to be a long-term debt," Staudenmeier said.
It is a good time for municipalities to borrow money, according to the county's financial analyst, Paul E. Buber.
Before the resolution was approved, he delivered a presentation recommending that the county takes advantage of the historical low-interest rates.
According to Buber, interest for the bond was about 7 percent in January 1970. Since then, it reached a high in January 1982 at 13.44 percent and then reached a low of 3.6 percent in February this year. As of Oct. 11, the interest was at 3.64 percent.
Buber said the county is a good credit risk with a current bond ranking of A+.
"From the time this board of commissioners took over, these issues have been presented to us and we have been working on them along with our fiscal team and administration to see how we can move forward on these projects," Commissioner Gary J. Hess said. "With the right climate out there, it is the best time to finance these and get these projects moving along so the county can move in a better, more efficient way."
As per Buber's recommendation, the board of commissioners appointed RBC Capitol Markets to serve as the bond underwriter/investment banker. RBC worked on the county's last bond issue in 2008 and is ranked first in the state and fifth in the nation for municipal securities.
Buber said he anticipates the funds becoming available mid-December.
County Administrator Mark Scarbinsky said the county is currently negotiating a contract with Motorola Communications Inc. for the communication upgrades. Scarbinsky said the commissioners will act on a contract in November. He estimated Wednesday that the contract will be about $15 million to $16 million and will take about 12 to 18 months for completion.
"We have challenges and deadlines we must meet at the end of this year," Commissioner George F. Halcovage said during the work session. "Rather than wait on this, we have been working on this for quite a number of months. In fact, it's one of the first things when we came into office that we addressed. When we looked at these projects, we looked at what is best to do for the county."
Communication services not in compliance with the FCC's mandated standards as of Jan. 1, 2013, will face substantial fines and can have licenses revoked. Financing for narrowbanding has been discussed internally for several years, Scarbinsky said.
Narrowbanding allows more radios within a spectrum by reducing the widths of the signals produced. Scott D. Krater, Schuylkill County Communications director, said the current equipment predates 1998 and modifications are necessary at the communications center and the 11 base stations.
Krater said the other alternative for the county was to convert to a digital radio system, which would cost substantially more not only for the county, but for police departments and EMS units that would have to buy new radios and possibly base stations.
The board is also considering buying and renovating a building to help with the overcrowding at the Human Services Building at 410 N. Centre St. Information about the building was not available Wednesday as discussions of potential real estate purchases by the county are protected by the state's Sunshine Act and can be held in executive session.
Additional projects include extensive renovation to the Human Services Building, a new roof at the prison and the county Communications Center, and other infrastructure improvements.
"We also have to look at the infrastructure and our buildings so that they do not continue to deteriorate," Hess said. "These are the people's buildings and where business happens. We have to continue to look at that because if we don't, it's just going to cost us more money in the end."
Halcovage said potential projects are being discussed and prioritized. He said another infrastructure improvement that has been discussed was the parking situation for the county courthouse.