Bucks Gets a Good Deal for $65.3 Million

Bucks County Commissioners unanimously approved, last week, to issue $65.3 million in bonds for improvement projects.

A majority of the bond proceeds will be used to help complete the $84 million Justice Center, which should be finished by summer, 2014. The Justice Center is largest capital project in Bucks County government's 331-year history.

Borrowing $65.3 million, however, should cost the average taxpayer about $27 per year, according to Phillyburbs.com.

Overall, with this bond issue, the county will be more than $300 million in debt this year. But the county has good credit and could borrow up to $1.12 billion.

According to county Director of Finance and Administration David Boscola, the $65.3 million in bonds will actually net the county approximately $75 million because they are able to issue the bonds at a premium, which will yield about $10 million more than the face value of the bonds.

A municipal bond is a promise, in this case by the county, to payback that $65.3 million plus interest. The interest rate on this bond issue is 2.377 percent over the next 15 years.

Wednesday’s $65 million bond issue also sets aside $1 million to expand the women’s prison, according to Phillyburbs.com, plus $10 million for open space, $5 million for bridge repairs and $6 million of the bond issue could go toward upgrading county's emergency radio communications.