Lackawanna County approves parameters to issue up to $35 million in bonds to fund roads, bridges and capital projects

Lackawanna County commissioners voted April 16 to approve an ordinance authorizing the issuance of up to $35 million in general obligation bonds to refinance short-term borrowing, reduce the interest rate on earlier financing and provide short-term funding for additional capital projects including roads and bridges.

County Chief Financial Officer Dave Bolzoni told commissioners the ordinance covers three components: (1) refunding an interim note of about $11.9 million issued in December 2023 that funded phase 1 of the capital program; (2) a rate modification to a $14,225,000 note from December 2023, lowering its rate from about 5.3976% to roughly 4.75%; and (3) a short-term borrowing of approximately $17,000,000 to fund phase 2 work, primarily roads and bridges. Bolzoni said the short-term piece will mature in two years and could be reduced if additional outside funding is secured.

Brian (county solicitor) and Bolzoni explained the ordinance is written with flexibility required by the Commonwealth's Local Government Unit Debt Act: the $35 million parameter gives room for pricing and minor adjustments when underwriters finalize terms. The county intends to accept a proposal from Raymond James & Associates Inc., working with NW Financial Group LLC, to serve as the purchaser/representative for the bonds.

Commissioners discussed the structure and nomenclature of the financing. Commissioners clarified that the $11.9 million refunding will be issued as bonds (longer maturity than the interim note), while the roughly $17 million component will be a bank loan structured as a short-term bond-equivalent with a two-year maturity and repayable earlier if funds become available. Solicitor Brian described this as “nomenclature” required by state rules: some debt that functions as a bank loan is nevertheless structured and approved as a bond for state reporting.

Commissioner Chris Chermak emphasized the urgency of addressing the county’s roads and bridges, saying deferred maintenance raises safety and cost risks. The ordinance was approved on a voice vote; the board chair declared "the ayes have it." The transcript does not record a roll-call tally.

Why it matters: County officials said phase 2 includes numerous road and bridge projects, some involving bridges already closed for safety reasons. The county’s financing choices are intended to reduce near-term debt service costs, lock in lower rates on earlier borrowing, and provide a short-term mechanism to begin additional capital work while staff pursue other funding sources.

Details recorded in the ordinance and discussion: the ordinance authorizes issuance of one or more series of general obligation bonds designated as County of Lackawanna, Pennsylvania General Obligation Bond Series of 2025, not to exceed an aggregate principal amount of $35,000,000. The ordinance permits bonds to be structured as publicly offered bonds or as bank loans where appropriate, and authorizes county officers to contract with a paying agent and take all necessary steps to complete the financings.

Next steps and limits: County staff said they will finalize pricing and send the actual issue details to the state after sale. The short-term note for phase 2 is expected to mature in two years; staff said additional state or federal funds could reduce the amount that ultimately must be refinanced then.

Action: The board approved the ordinance; no further committee action was recorded in the transcript.