SOMERSET – Somerset County’s top officials may take action next month to approve a bond refinancing that is expected to allow the county to realize a six-figure savings.
Sonya Augustine, the county’s chief clerk, said during Tuesday’s meeting of the Somerset County Board of Commissioners that PNC Bank recently submitted a proposal to refinance the county’s general obligation bond series of 2014. The refinancing would save the county approximately $146,000, she said.
“The refinancing would not include new debt, but would be done in order to take advantage of lower interest rates,” Augustine said.
Commissioners Gerald Walker, John P. “Pat” Terlingo and Pamela Tokar-Ickes voted on Tuesday to authorize the preparation of documents related to the potential bond refinancing.
They are expected to take formal action on the proposal at their next meeting on July 9.
“This will enable us to recoup savings, given the lower interest rates, and potentially to have that savings to apply to other projects or to the county’s budget next year,” Tokar-Ickes said.
Rebecca Canavan, director of finance for Somerset County, said after the meeting that the original amount of the bond was $9.285 million. It was issued to provide long-term financing for capital projects such as renovations to the county jail’s prisoner intake facility, upgrades to the county’s 911 system and heating, ventilation and air conditioning repairs and improvements at the jail, she added.