SUNBURY - Northumberland County commissioners expect to save approximately $168,000 next year by refinancing its debt service through Bank of America.
Commissioners Frank Sawicki, Vinny Clausi and Merle Phillips passed an ordinance Tuesday approving the refinancing of $3,890,000 in debt service for 2007 and 2008 loans, a move that will save the county $168,628.83 by reducing its interest rate from 3.7 percent to 2.35 percent.
The board agreed to accept Bank of America's refinancing proposal and pay Concord Public Finance $51,000 to refinance the debt service. The county received a total of six proposals to refinance its debt service, which remains at $27.5 million.
Clausi and Sawicki said the county has saved approximately $4 million by refinancing its debt service and cutting its interest rate in half during the past six years.
Christopher M. Gibbons, principal of Concord Public Finance, and Attorney Joseph K. Pierce of Eckert Seamans explained the refinancing process before the board approved the ordinance.
In other business
Chief clerk Gary Steffen was authorized by the commissioners to serve as an agent to work with Pennsylvania Emergency Management Agency and Federal Emergency Management Agency officials in recouping money for damages incurred by the county during Hurricane Irene and Tropical Storm Lee.
County engineer Chuck Hopta was appointed the alternate agent for the county.
After the meeting, Sawicki said the commissioners have agreed to retain Aramark, of Philadelphia, to provide food services at the county prison. The commissioners hired Aramark last month with the understanding that the county would save between $100,000 to $200,000 per year. But at a prison board meeting on Oct. 5, Clausi claimed the county wouldn't realize a savings due to a miscalculation involving the current in-house cost per meal.
Since the prison board meeting, Sawicki said the proposal has been thoroughly reviewed and it was determined that the county will still save money with Aramark.
Prison operations commander Brian Wheary said Tuesday the county will save approximately $40,000 by the end of the year, with a more substantial savings anticipated for 2012.