County introduces ordinance to authorize up to $66 million in refunding bonds; municipal advisor projects $2.4M present-value savings

Luzerne County introduced an ordinance authorizing the incurrence of non-electoral debt by issuing general obligation refunding bonds in an aggregate principal amount not to exceed $66,030,000. The bonds would refinance existing 2015 and 2017 general obligation obligations and pay related costs, including possible swap termination payments, and require usual documentation and pledges of full faith and credit.

FSL Public Finance, the county’s municipal advisor, presented a work-session briefing showing current market conditions and a refunding plan that targets the county’s callable 2015 and 2017 obligations. The advisor said, using market rates as of July 30, 2025 and assuming an S&P rating of A (stable), refunding both the 2015 series A and the 2017 IDA bonds could produce gross budget-year savings and a net present-value savings of approximately $2.4 million, or about 4.15% of refunded par.

Key timing proposed by the advisor included a rating call in late August, DCED filing following council approval, a pricing target in late September (the presentation noted a current target date of Sept. 23), and a closing targeted for Oct. 15. The municipal advisor described a plan to structure the new debt so aggregate annual debt service would remain level for budgeting purposes.

Council members asked about interest-rate risk and the difference between nominal savings and net present-value savings. The advisor explained the larger gross budgetary savings projected over five years and the discounted net present-value figure used for evaluating refunding efficacy. No final vote on bond issuance occurred at the introduction; the ordinance was formally introduced and scheduled for later action subject to DCED and other standard approvals.