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Newborn calf udderly similar to Simmons of KISS fame

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County council member pushing for prison probe over inmate deaths

<p>WILKES-BARRE &#8212; The bond deal designed to put the city on the road to financial recovery will cost more than $71 million with approximately $30 million in interest payments over the next 20 years.</p><p>The $41.3 million in general obligation bonds issued in three series last week capped a seven-month effort to begin the recovery by stretching out the long-term debt payments and freeing up cash for the city to pay its bills and employees and provide essential services, including the reconstruction of damaged sections of the Solomon Creek wall.</p><p>Scott Shearer, managing director of PFM Financial Advisors in Harrisburg, said the sale closed July 27 after interest rates were locked in two weeks earlier.</p><p>&#8220;Overall there was good interest in the transaction,&#8221; Shearer said Tuesday.</p><p>Faced with a $2 million increase in its debt service next year and the threat of further collapse of the Depression-era wall, the city turned to the bond issue first discussed in January. Council was reluctant to take on additional debt and debated the issue, seeking alternatives from PFM, the financial consultant hired to guide Wilkes-Barre through the state&#8217;s Early Intervention Program for municipalities on the verge of financial collapse. The city contributed $10,000 in addition to the state&#8217;s $50,000 grant for PFM&#8217;s guidance.</p><p>Mayor Tony George attempted to spur council to act in February with a public letter saying city finances were in &#8220;dire straits&#8221; and being strained by rising expenses from debt and pensions and a deficit from 2016. By a 3-2 vote in May, council approved the bond issue with a maximum principal of $52 million. The actual figure came in much lower and the concern of higher interest rates due to the delay in council making its decision was a non-issue, Shearer said.</p><p>Shearer credited underwriter PNC for its work on the bonds and added, &#8220;The market really cooperated with us.&#8221;</p><p>Interest rates for the three series range between 4 and 5 percent, Shearer said. The bonds have a maturity date of 2038. Most of the bond money is designated for the debt and restructuring. As result, the debt service will drop to a manageable $5.5 million from $7.5 million.</p><p>A total of $4.4 million of the bonds will go toward the Solomon Creek project that provides flood protection to residents in South Wilkes-Barre. The city hired Borton-Lawson engineers and architects to design and manage the project that&#8217;s still months away from starting. City Administrator Ted Wampole said a design is expected to be ready in a few weeks.</p><p><ins>The city still has more work to do to improve its finances and contracted with The PFM Group of Philadelphia at a cost of $200,000 for guidance with phase two of the Early Intervention Program. Most of the funding to cover PFM&#8217;s costs is from a state grant with the city contributing 10 percent or $20,000.</ins></p><style>
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<div class="neCaption">The bonds issued for the city of Wilkes-Barre last week provide $4.4 million for the reconstruction of the Solomon Creek wall. A temporary patch is in place on the portion of the wall that collapsed in December. </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2017/08/web1_TTL041417SolomonCreek3CMYK.jpg</photo0><caption0>The bonds issued for the city of Wilkes-Barre last week provide $4.4 million for the reconstruction of the Solomon Creek wall. A temporary patch is in place on the portion of the wall that collapsed in December. </caption0><photoCredit0></photoCredit0></div></div>
<div class="metaInfo"><bylineMeta><p>By Jerry Lynott</p><p>jlynott@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Jerry Lynott at 570-991-6120 or on Twitter @TLJerryLynott.</p></shirttailMeta></div>

Wilkes-Barre bond deal estimated at $71 million