Last week, the Schuylkill County Commissioners refinanced existing debt, saving a cool $1 million by doing so. The county was able to save while refinancing due to an improvement in its financial rating, as determined by Moody’s Investors Service.

The commissioners authorized issuance of general obligation bonds, not to exceed $13 million, with $10.7 million used to refinance existing debt and the remainder earmarked for new voting machines, a state mandate.

Moody’s Investors Service provides international financial research on bonds issued by commercial and government entities. Moody’s, along with Standard & Poor’s and Fitch Group, is considered one of the Big Three credit rating agencies. Citing “strong leadership, excellent financial management and the healthy state of the county finances,” Moody’s rating moved Schuylkill County up two steps in classification to the AA2 rating, which is the third best possible rating.

The improved rating saved the county in two ways; the county didn’t need to purchase bond insurance (estimated at about $200,000) and could refinance at a better rate.

During a meeting Wednesday, the Commissioners approved a fee for service contracts to manage the refinance, entering into agreements with PFM Asset Management, a firm with offices in Pittsburgh and Harrisburg. PFM will establish an escrow account for the 2019 bond issue at a fee not to exceed $5,000, and also act as a financial advistor to the county, at a cost not to exceed $25,000.

County Administrator Gary Bender, solicitor Glenn Roth and Director of Finance Paul Buber worked on the refinance project, in addition to other county officials.