Allegheny County Council is to vote tomorrow evening on a proposal to float up to $48million in new bonds. Council Budget Chairman Bill Robinson says this is part of an original $125 million bond sale that was approved by council.....
"It was a bit ambitious, but the interest rates looked very favorable and it was going to save the taxpayers money but once we got out into the bond market, it was obvious there were not enough buyers at our price."
So, County Executive Dan Onorato waited to sell the rest of the bonds until interest rates were lower and has come back to council now for reauthorization. Robinson says the money will be used for capital budget items including street paving and upgrades to the county parks.
The Onorato Adminsitration projects that the sale of the new bonds will add about $3.5 million to the county's annual debt service.
In addition, Robinson says Council tomorrow is to take up a proposal to refinance a current $40 million dollar bond at a lower rate which could save the county up to $1.3 million.
"It's something we've been doing over the last few years. We go out on the market and look for favorable rates. This is another attempt to make sure we're getting the best deal for our money, and refinancing is one way to make sure you're not passing along a lot of debt to future generations."
Robinson expects both proposals to pass.