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Northampton County discusses $35 million bond ordinance and expansion of P25 public-safety radio system

2144791 · January 24, 2025
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Summary

County officials reviewed a proposed parameters ordinance to authorize up to $35 million in borrowing for capital projects and lease equipment and heard a detailed presentation on expanding the county's P25 public-safety radio infrastructure, to be repaid in part from 9‑1‑1 surcharge revenues.

Northampton County officials on Jan. 22 reviewed a proposed parameters bond ordinance that would authorize up to $35,000,000 in borrowing for capital projects and lease equipment, and discussed a separate plan to expand the county’s P25 public-safety radio network using 9‑1‑1 surcharge revenues for repayment.

The county’s financial adviser, Scott Scheer of PFM, told the finance committee that the parameters ordinance would set a maximum principal amount of $35,000,000 and a maximum interest rate in the neighborhood of 5.5 percent. “The main change now is that the max amount is 35,000,000, same max rate 5.5 percent or so,” Scheer said, adding that the $35 million estimate currently breaks down roughly into about $29,000,000 for various capital projects (with the bulk for a county parking project) and about $6,000,000 to refinance or purchase leased equipment taken out in 2021. Scheer said if the committee favors moving forward, bond pricing would likely occur in late February with a close in March.

Representatives from Skanska, the construction manager, answered questions about cost estimates for the county parking garage option. Gary Warren of Skanska said cost benchmarks for the standalone garage remain similar to figures the county saw in prior presentations. He said construction escalation assumptions of roughly 3–4 percent per year were being used for future timing and cost adjustments.

The committee also heard a detailed briefing on expanding the county’s P25 radio infrastructure, presented by county public-safety staff. The presentation explained that P25 is a contemporary digital trunked radio standard used by many public-safety agencies and that expanding the county’s P25 system would move the county away from two-decade-old “T-band” channels that suffer from capacity limits and interference. The presenter said P25 expansion would use a simulcast architecture across 12 sites to provide countywide coverage, enable modern features such as encryption and GPS location, and improve interoperability with Pennsylvania State Police and municipal responders. “Public safety communication is vital to effective operations, emergency service, and safety in the community,” the presenter said.

The presenter said 9‑1‑1 surcharge revenues — the monthly fee collected on phone lines and VoIP that he described as $1.95 per line — are eligible to repay bonds for radio infrastructure and to fund long-term maintenance. He said the county’s allocation from the state 9‑1‑1 formula is roughly $8,500,000, and that 9‑1‑1 funds have been used for similar projects in other Pennsylvania counties. The presenter added that, because federal and state grants and many vendor requirements now expect P25-compatible radios, an infrastructure upgrade would make departments more competitive for grant funding.

Committee members asked whether the county’s previously presented cost estimate for the garage had been revised if the council removed a planned office building; Skanska and county staff responded that the garage estimate was developed as a separate “standalone” option and remained largely unchanged, though escalation and site-specific conditions could affect final pricing.

No formal vote on the parameters ordinance or on any bond authorization occurred during the Jan. 22 meeting; presenters described next steps if the county elects to proceed, including preparing a prospectus and meeting with rating agencies.

The discussion also covered technical constraints on the existing system: staff noted a Federal Communications Commission freeze on T-band operations and said the county’s current 500‑MHz channels have limited capacity and can experience interference. Presenters showed radio-shelter equipment, battery backups, GPS timing units and other infrastructure elements to illustrate what would be installed at new tower sites.

The committee did not take action to adopt an ordinance during the meeting; any ordinance would require a subsequent formal council vote and standard bond-issuance steps.

Looking ahead, county staff said the county would refine cost estimates, prepare bond-sale documents if directed, and continue technical coordination on P25 coverage and interoperability with municipal agencies and the Pennsylvania State Police.