Council hears first reading for $3.2 million in interim notes to refinance 2022 bond, continue water project

Bond counsel Jennifer Karen, identified in the meeting as an attorney with Eckert (transcript: “Eckert Siemens”) in Harrisburg, gave the first reading of an ordinance authorizing the city to issue two general-obligation interim notes under the Local Government Unit Debt Act.

Karen said the Series A note would be a tax-exempt note in the principal amount of $1,700,000 to refund the outstanding 2022C bond that matures April 1. The Series B note would be a tax-exempt note in the principal amount of $1,500,000 to continue the city’s water project (wells and pipeline) on an interim basis; those project draws are to be reimbursed later from PennVEST funding. Karen said loan proposals were solicited and were to be received by Feb. 24, and that terms of the selected lender would be incorporated into the ordinance for second reading and final enactment.

Daryl Peck of Concord Public Finance summarized the procurement timeline, said proposals are expected on Feb. 24, and that staff expects to present a concise summary and recommendation for the council at its March 2 meeting so the closing can occur on March 30 and the April 1 maturing note can be repaid.

Council voted to move the ordinance forward to a second reading; recorded roll-call votes were read and the motion to proceed was approved.

Why it matters

If enacted, the ordinance will permit the city to pledge its full-faith-and-credit for two interim notes, create a segregated project account for Series B draws, and authorize officers to complete closing actions. The proposal carries near-term scheduling implications: winning loan terms must be incorporated before the March 2 second reading to meet the March 30 closing target.

Next steps

Council advanced the ordinance for second reading and final enactment, pending selection of lender terms and required filings with the Department of Community and Economic Development.