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Berks County approves ordinance to authorize bond issue to fund $29 million in capital projects
Summary
The Berks County Board of Commissioners voted to enact an ordinance authorizing a bond parameters resolution that permits issuing up to $40 million (statutory cap) while planning to issue approximately $29 million to fund county capital projects, with pricing to be scheduled next week, officials said.
The Berks County Board of Commissioners voted on March 24 to enact an ordinance authorizing a parameters resolution that allows the county to issue up to $40,000,000 in debt while planning to issue bonds sufficient to fund about $29,000,000 of capital projects.
Financial advisor Mike Van told the board the larger $40 million figure is a statutory "not-to-exceed" limit required for filing and gives county officials flexibility to structure debt in the best economic terms at pricing. "Before you today ... there's an ordinance for your consideration, to issue up to $40,000,000 and that's a parameters resolution," Van said, adding the county intends to issue the amount necessary to deposit $29,000,000 into the county's project fund and amortize it over a 20-year period.
Van emphasized Berks County's comparatively low debt level and strong credit position. He said the county has about $68,000,000 of total debt outstanding and that the county is currently rated AAA by Moody's Investors Service; he said a rating call had taken place and the analysts' matrix showed no change from the previous rating. "We expect that there would be no change to that," he said, noting that formal confirmation was expected the following Tuesday.
If the board adopted the ordinance, the county planned to move quickly to lock in rates: Van said pricing was being scheduled for next Thursday. The parameters resolution does not obligate the county to issue the full $40,000,000; it sets an upper limit for structuring the final debt offering.
Commissioner Michael Rivera moved to enact county ordinance 01, 2026; Commissioner Dante Santoni seconded. The board voted in favor and the chair announced the motion carried. The record shows Commissioner Rivera had earlier disclosed a conflict and was recused from voting on the item.
Next steps include receiving Moody's confirmation of the credit rating and completing the scheduled pricing; county officials said they would keep the board and public informed of final pricing and the exact issuance amount.
