Warren County authorizes up to $10 million in bonds for public-safety radio upgrades

Warren County officials voted in a special meeting to authorize the incurring of non-electoral general-obligation debt not to exceed $10,000,000 to fund phase 2 of the county’s public-safety radio system, including construction of three radio towers in Sugar Grove, Elk Township and Sheffield.

The authorization instructs county officers to complete closing paperwork, permits a sale of the bonds to PNC Capital Markets and establishes U.S. Bank as the sinking-fund depository and paying agent, county bond counsel said. Anthony Gitka, the county’s bond counsel, told the meeting the ordinance “authorizes … your full faith, credit, and taxing power to repay those bonds” and that “PNC is gonna underwrite the bonds.”

Why it matters: the project is described by county officials as a multi-phase effort to modernize 9-1-1 communications used by first responders. The bonds will be repaid from county revenues; counsel said the county’s ordinance sets a maximum principal amount but will constrain annual debt-service so the county does not exceed estimated payments.

At the meeting, Gitka described procedural steps required under state law. He said the county must advertise the proposed bond issue before the vote, and, if the board approves, run a second ad notifying the public of the decision before submitting documents to the Pennsylvania Department of Community and Economic Development for review. Gitka said that review is procedural: “Did you follow the right steps?” he said, adding the department does not second-guess the county’s discretionary decision to do the project.

Officials discussed how the ordinance ties borrowing to a maximum dollar amount rather than a fixed millage. One county official asked about the current millage, saying, “Right now, our mill is at 507,000.” Counsel and other officials responded that reassessment typically leaves county revenue neutral and that the ordinance is structured around a target annual debt-service number rather than a static millage rate. Counsel said the county expects annual debt-service payments to be in the neighborhood of $547,000 (he also referenced a rounded figure of approximately $550,000 during the discussion).

Project details disclosed at the meeting identify this work as phase 2 of the public-safety radio project. A county official summarized: “This the 5.2 for the public safety radio project, it is phase 2 of the original. There was a 2-phase plan. This is phase 2 that will include construction of 3 towers. 1 in Sugar Grove, 1 in Elk Township, and 1 in Sheffield.” Counsel said the bonds’ useful life is expected to match the technology and infrastructure lifespan the county used in its financing assumptions.

The motion to authorize the bonds was made and seconded at the meeting. Officials adopted the motion on a voice vote; the clerk announced, “All in favor signify by saying aye. Aye.” A presiding county official then said, “Motion carries.” The ordinance also authorizes county officers to take necessary steps to close the financing and authorizes counsel to file required documents with the state agency.

The county noted market conditions are being monitored; Gitka said the underwriter will market the bonds and present the county with final pricing once placement is arranged. The meeting record shows the county intends to borrow only the amount needed for the project and that the $10,000,000 figure is a maximum ceiling to allow flexibility during pricing and issuance.

Next steps identified at the meeting are finalizing underwriting arrangements with PNC Capital Markets, executing closing documents, placing funds with U.S. Bank as depository/paying agent, advertising the outcome for public notice, and submitting materials to the Pennsylvania Department of Community and Economic Development for procedural review.