Commissioners approve underwriting agreement pending legal review to restart finance committee work

Delaware County commissioners on Aug. 4 voted to select Baird as managing underwriter — pending legal review — to assist the county in restarting a strategic investment and finance committee and in developing a comprehensive financial plan and capital improvement plan.

The board said Baird (a commonly used municipal underwriter for the county) would work alongside the county’s municipal advisor, Baker Tilly, and coordinate with the auditor, treasurer and county council. The planned work includes creating borrowing and investment policies, conducting a comprehensive asset inventory, reviewing existing leases, assessing the impacts of Senate Bill No. 1 (as referenced by commissioners), and exploring residential tax-increment financing (TIF) districts.

Why it matters: county leaders said formalizing a strategic plan and clear debt and investment policies would improve the county’s ability to borrow at reduced rates and give underwriters more confidence in the county’s finances.

Key details: commissioners said the typical placement-agent fee is a standard rate (discussed in the meeting as about 1% of bonding) and that Baird would not be paid until the county issued debt. The commissioners also discussed expanding asset-inventory tracking for items over $10,000 and possibly pursuing an accrual-type audit.

Action: a motion to engage Baird as managing underwriter was approved with the condition the contract be reviewed by legal counsel first. The board recorded a roll-call vote approving the motion to proceed pending legal review.

Next steps: staff will route the proposed agreement to county legal for review and, if approved, Baird and the county’s municipal advisor will begin work on the financial plan and capital-improvement program.

Ending: commissioners said they are seeking to strengthen financial policies and to pursue options that could improve the county’s bond rating and borrowing costs.