Schuylkill County commissioners will borrow $5 million to pay for several improvement projects, including the $2.99 million renovation of the former human services building that promises big savings.

Commissioners at a public meeting Wednesday agreed to borrow the money as a general obligation note from Miners Bank, Minersville.

The county in February solicited requests for proposals. Miners was among three lending institutions that submitted proposals, said county Finance Director Paul E. Buber.

The proposal from Miners Bank includes a tax-exempt and fixed rate at 3.88 percent for the first 10 years.

“For the second 10 years, the rate will float. But it has a cap of 4.8, again on a tax-exempt basis,” Buber said.

The county can prepay the note, in whole or in part, at any time, without penalty.

That’s important because the county jail has been struggling for decades with overcrowding. To comply with state demands, the county has been housing inmates outside the county at rates of about $65 a day per inmate.

The county is seeking a long-range solution, and may mean borrowing money to build a facility, Buber said.

“When that time comes, it will be appropriate to look at this obligation and see if it would be advantageous to perhaps refinance it at the time,” he said.

The renovation of the human services building, at 410-420 N. Centre St., Pottsville, is expected to save the county almost $90,000 a year, said county engineer and real estate Director Lisa M. Mahall.

The building until 2016 housed the Children and Youth Services Agency, which moved into an adjacent county-owned building that offered more room.

The county wants to move its mental health/developmental services and drug and alcohol agencies and the office of District Judge James Reiley to the renovated building. All are currently in leased quarters.

Mental Health/Developmental Services and the D&A agency’s rent is currently $62,830 a year and has an annual increase tied to the Consumer Price Index. The current rent for Reiley’s office is $27,000 a year.

“By having these offices located in a county-owned building, the annual rent savings will be a minimum of $89,830,” Mahall said.

Renovations on the building have already begun.

County Administrator Gary R. Bender said the $5 million loan will also pay for repairs to the exterior wall surrounding the prison for $757,000; replacing the courthouse roof for $495,000; replacing the courthouse security system for $357,250.

Also, a new rubber roof for the courthouse annex for $170,000; installing four new air conditioning units in courtroom No. 1 for $129,455; a new rubber roof for the security area, human resources and archives for $49,980; removing an air conditioning unit, and buying and installing two other units for Judge John E. Domalakes’ office and the court administrator for $26,380; and repaving the prison parking lot for $24,935.