Shamokin-Coal Twp. Joint Sewer Authority saves $500K with refunded bonds
WEIGH SCALES - The Shamokin-Coal Township Joint Sewer Authority will realize a net savings of more than $500,000 after refunding construction bonds issued in 2006.
The authority's operations board announced the savings at its meeting Wednesday night after a report from Financial S&lutions LLC, of Scranton, a financial advisory firm.
"On July 24, the authority was able to successfully refund $8.85 million of the 2006 bonds and realize a savings of $517,736. A majority of the savings will be realized by the authority this fiscal year," board president Phil Zalar said.
The savings were realized, according to representative of the firm at the meeting, due to a historically low current interest rate environment and because of the authority's positive credit rating.
"We are very happy with the results and guidance we have received," Zalar said. "If positive market conditions continue, we will be in the position to refinance a second portion of the 2006 bonds later this year to achieve additional savings."
The authority is also looking to refinance other bonds in 2015 in order to raise more funds for capital projects.
In other business:
- The board reported the Wastewater Treatment Plant expansion project is moving along and approved five change orders cost a total of $19,536.22.
- Great Valley Consultants, the authority's engineering firm, reported they will be ready to go to bid on plans to install a generator for the wastewater treatment plants, costing approximately $500,000. Funds for the project will come from the 2006 construction bond fund.
- Approval was given to purchase a new portable welder that can be used to weld stainless steel and aluminum at a cost of $2,815 and to participate in the Pennsylvania Higher Education Assistance Agency's Work-Study program for the coming academic year. All motions were approved by a 6-0 vote with board members Zalar, Darwin Tobias, Edward Christiano, Joseph Wightman, Michael Carpenter and David Kopitsky Jr. voting yes.
- The board received confirmation from Shamokin City Council that Kopitsky had been reappointed to the authority board for another five-year term.