Northampton County's stable credit rating and patience played key roles in borrowing money to refinance old bonds and make important capital improvements.

County financial adviser Gary Pulcini told council members that the financing of $11.4 million in new bonds and the refinancing of $10.2 million from the 2006 bond would increase the county's debt service by $311,000 next year. At a net interest cost (NIC) of 2.67 percent the total dollar price of the new 2013 bonds is $21.6 million. The actual purchase price of the bond at it 2023 maturity date is $19.6 million with a true interest cost (TIC) of 2.57 percent. Pulcini said this debt management plan allows the county to borrow money for future long-term capital projects while preserving the county's AA credit rating and general fund balance.

An unexpected spike in bond interest rates at the beginning of July made it a poor time to issue new bonds or refinance old ones. Council heeded the advice of its financial counsel to wait a few weeks and were able to lock in a much better interest rate which saved the county taxpayers about $2 million.

Council approved the 2013 bond by an 8-0 vote at its July 18 meeting. Councilman Bruce Gilbert was absent.

County plans for the new money include about $7 million for much needed repairs to about 16 bridges and $4 million for new generators at Gracedale, the county's nursing home. PennDOT has evaluated these bridges as unsafe and in need of repair within three years.

Acknowledging that the county's bridges have serious infrastructure problems and sending a wake-up call to the state lawmakers in Harrisburg, council President John Cusick said, "It's good to see there is a governing body that can address transportation issues."

Council's next regular meeting is at 6:30 p.m., Aug. 1 at Northampton County Courthouse's third floor, 669 Washington St., Easton.