READING, Pa. – The Berks County Commissioners on Thursday adopted an ordinance to incur up to $40 million in debt through the issuance of general obligation bonds.
The purpose of the new debt would be for the design, acquisition, construction, demolition and installation costs of various capital improvement projects to the county’s existing buildings, facilities and systems.
Those projects would also include the installation of mechanical, electrical, plumbing and other building upgrades for the County Services Center and the County Court House.
Michael D. Vind, a financial advisor from FSL Public Finance, LLC, explained the $40 million is only setting a parameter, as the county projects are anticipated to total $29 million.
“The reason we have a higher amount is a state law requiring that we can structure the debt for the best economic ways possible for the county,” Vind said. “But to file that with Department of Community Development, we have to have it not to exceed the limit, so we always increase that amount.”
Vind said the bond on the day of issuance will provide $29 million to be deposited into the county’s capital projects fund.
Vind pointed out that Berks County only has about $68 million of total outstanding debt, which is a comparatively lower number than neighboring counties.
The county has a AAA rating from Moody’s Investor Services, which ensures the best rates.
Vind said those numbers will be confirmed by Tuesday.
Berks County Commissioner Christian Y. Leinbach said all governments, whether at the federal, state, county or local levels, must periodically take on debt.
“If we took the money out of fund balance, we would put ourselves in jeopardy of not having enough fund balance to maintain the AAA bond rating, and without a AAA bond rating, that would cost us a lot of money,” Leinbach said. “It allows us to get the best rates possible on short term or long-term borrowing.”
By adopting the ordinance on Thursday, Vind said the county should be able to lock in the rates in one week.
In other business, the commissioners adopted a resolution to declare an emergency for urgent remediation and repairs needed to address the safety and stability of the roof, ceiling and structure of the Parks Maintenance Building at the Berks County Heritage Center.
The damage occurred because of storm and wind damage on March 16.
The emergency declaration allows the county to waive all requirements of the law related to purchasing procedures.
Also Thursday, Leinbach gave an update as to what the commissioners have been doing about the ICE facility proposed to be located in a 520,000-square foot warehouse on Mountain Road in Upper Bern Township.
Leinbach said the commissioners are planning to speak with the Department of Homeland Security and will ask for an agreement in writing as to what is being proposed.
Leinbach reported he recently had a call with Rep. Daniel Meuser on the topic where he reiterated that his concerns include: the impacts on the immediate community, the financial impacts of the loss of $828,000 in tax revenue between Upper Bern Township, the Hamburg School District and the County, the impacts of the infrastructure related to sewer and water and the impacts on the state police and the one volunteer fire company in the township.
“The facility is proposing to house an average of 1,500 people, which would double the population of that area,” Leinbach added. “It is right behind the Amazon warehouse, which already has caused significant congestion of traffic at the change of shifts because of the hundreds of employees.”
Leinbach said he does not yet have a time or date for the call with DHS.