Schuylkill County has parlayed an excellent credit rating into substantial savings on a refinancing move.

During a meeting Wednesday, the commissioners authorized issuance of general obligation bonds not to exceed $13 million. After the meeting, County Director of Finance Paul Buber said that the $13 million figure has some flexibility, as the county will be in the market and pricing bonds and may wind up with a figure closer to $12.2 or 12.3 million. Buber said that $10.7 million will be used to refinance existing debt, with the remainder earmarked to purchase new voting machines, a state mandate.

The county saved about $1 million on the refinance, which comes close to the estimated cost for the voting machines purchase. The county was able to save that money, because of a change in its investment grade classification, as determined by Moody’s.

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. The county moved up two steps in classification to the AA2 rating, which is the third best possible rating.

The improvement in rating, according to Moody’s, was due to “strong county leadership, excellent financial management, and the healthy state of the county’s finances.”

Marty Cerullo, of Cerullo, Datte and Burke, who helped negotiate the process, said the improved credit rating was extremely important.

“Two steps up is a big deal, and it’s very uncommon for that to happen,” Cerullo said. “Given the current rating, you (the county) don’t need bond insurance, which would have cost another $200,000.”

County Administrator Gary Bender, solicitor Glenn Roth and Buber worked on the refinance project. Cerullo said that Buber shone during a daylong question-and-answer period with Moody’s Investor Service, which Cerullo compared to an intense, grilling “cross-examination on the witness stand” in court. The county’s bond rating process was last done in 2012.

“Moody had all the questions,” Cerullo said. “And Paul (Buber) had all the answers.”

How much will the new voting machines cost? Carbon County recently spent $436,546 for about 125 machines; Schuylkill County will need about 360 machines. Buber said that Schuylkill County officials haven’t yet selected a machine and are considering models from four vendors.

In a related matter, the commissioners entered into a fee for service contract with M&T Bank, which will serve as paying agent, registrar and transfer agent for the 2019 general obligation bond issue. There will be a one-time escrow agent fee of $750, a one-time redemption fee of $500 and $750 per bond series annually.