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Council hears bond borrowing options; projects identified for potential 2025 borrowing
Summary
Council committees received a bond counsel presentation on three borrowing options and discussed a list of capital projects that could be funded if the council proceeds with bond borrowing; formal action was deferred to the March business meeting when bond counsel will attend.
Council members heard a presentation from bond counsel and discussed three borrowing options for 2025 during the Feb. 5 work session but did not take formal action. Committee reports described three options presented to the borough: a tight wraparound option and 20- and 25-year schedules with differing interest profiles.
Council members said they received a packet with three options and that the council is unlikely to make motions before the March business meeting, when Ed Murray of the bond counsel office is expected to attend full council to provide counsel. The bond borrowing would be intended to fund several capital projects identified in committee reports: Whites Road Pool improvement, Edgemont Avenue rehabilitation, North Cannon Avenue rehabilitation, Poplar Street rehabilitation and West Third Street rehabilitation.
Committee discussion noted that two of the borough's four existing bonds will be paid off by 02/1934 (as described in the meeting), and that certain wraparound options keep costs lower initially before increasing as older bonds amortize. A Moody's rating was described in committee remarks as "a minus rating from Moody's" in the transcript.
Council members said staff will prepare materials and that motions on borrowing and specific bids are likely to appear at the March business meeting when bond counsel can be present. No ordinance or bond authorization vote was recorded in the work session transcript; the discussion was presented as informational and preparatory.
Council members also said committees are working on policies for general fund and debt-service fund balances to guide future councils on appropriate fund balances and annual debt limits.
Because the council did not adopt a financing authorization at the Feb. 5 work session, any borrowing would require future council action and appropriate public notice.
