Council holds first reading of measure to authorize up to $55 million tax‑and‑revenue anticipation notes

At first reading, the county presented an ordinance authorizing tax‑and‑revenue anticipation notes in a maximum aggregate amount of $55,000,000 to address a timing mismatch created by the state budget impasse.

CFO Kelly Diaz said Delaware County covered roughly $36 million in state‑funded human‑services payments from July through September to keep providers running and that the proposed line would provide temporary access to cash until state reimbursements are received. She said the administration anticipates settlement in January 2026 and that principal and interest would be repaid within the fiscal year.

Jamie Schlesinger, financial advisor, said the county ran a competitive process and recommended a PNC proposal: a variable‑rate drawdown facility tied to SOFR (Schlesinger said the expected rate at the time of presentation was about 3.5%). He noted an unused‑availability fee of 0.15% on the undrawn balance (which he calculated as about $6,800 per month if the full line remained unused) and that the facility could be prepaid; maturity is as late as Dec. 31, 2026. Schlesinger said only interest is paid on funds actually drawn; the unused‑availability fee covers the bank's cost of reserving capital.

Council members asked clarifying questions about early repayment, fee timing and legal costs; Schlesinger confirmed the loan can be prepaid earlier and closed to avoid further unused‑availability charges, and that legal fees for the transaction would include an estimated $10,000 in counsel costs.

This was a first reading; council did not vote to issue debt at this meeting.