Trib: Mt. Lebanon to borrow $4.25 million

The Mt. Lebanon commissioners on Wednesday approved borrowing $4.25 million to refinance old debt, but couldn't reach an agreement over borrowing $7 million for pool and park improvements.

The board was unanimously in favor of refinancing the original $3.85 million in bonds from 2007, which with low interest rates should save the municipality $226,000 through 2027, finance director Marcia Taylor said.

Read the full article:

• www.pittsburghlive.com/x/pittsburghtrib/news/s_765284.html (Pittsburgh Tribune-Review)

The Almanac: Mt. Lebanon hopes to limit second bond issue

This year's property assessments will likely impact millage rates in Mt. Lebanon, according to a Sept. 19 presentation by director of fiscal services Jan Klein. She said that if assessment values increase--a likely outcome--the district will have to lower the millage rate proportionally.

Millage rates are of concern to the district as it prepares to rebid its $113 million high school renovation project.

Read the full article:

• www.thealmanac.net/alm/story11/09-21-2011-ML-HS-bond- (The Almanac)

Trib: Proposed Mt. Lebanon bond issue to upgrade recreational facilities

Sports fans in Mt. Lebanon are hoping a proposed $6 million to $7 million bond issue for recreation improvements could give the community more practice and playing fields.

Demand for open space is tight -- and getting tighter -- with proposed construction projects. The bond issue would cover a number of improvements, including a new fire truck, and repairs and upgrades to the municipal pool and locker rooms, Commission President Dan Miller said.

But parents and coaches of Mt. Lebanon athletes were most interested in another part of the proposal: developing a swath of unused community land on McNeilly Road as multipurpose athletic fields for about $3.1 million.

Read the full article:

• www.pittsburghlive.com/x/pittsburghtrib/news/pittsburgh/s_752018.html (Pittsburgh Tribune-Review)
  

Dan Miller: Irresponsible Debt and the Public Credit Card

On his blog, Commissioner Dan Miller writes about a topic that's hot in Mt. Lebanon these days: looming public expenses and how to pay for them. He writes, "If we continue borrowing money to pay for reconstructing our streets (like we did in 2009), we could run up public debt by $18 to $36 million in principle alone over the next 20 years. To say nothing of the interest payments. Just to take care of our streets."

To help our municipality kick the habit of borrowing for predictable expenses, Commissioner Miller proposed a pay-as-you-go ordinance for street reconstruction:

Mt. Lebanon has a longstanding policy of implementing an annual street reconstruction program with a goal of rebuilding approximately one mile of our paved streets every year. This program has largely been funded over the last decade by the issuing of debt in the form of Municipal bonds that are payable over twenty years and accrue interest. While it is integral to the Municipality to have an annual street reconstruction program, it is also integral to the taxpayers that such annual, reoccurring expenses be appropriately lodged in its general fund accounting so that the true cost of government is more accountable and transparent to our residents.

This ordinance was introduced at the last Commission meeting. It is scheduled for a public hearing and possible vote on Monday, 23 August, 2010. If you have something to say about the proposed ordinance, be at Monday's meeting.

Commissioner Miller's entire post is informative; do read it: Irresponsible Debt and the Public Credit Card. (One interesting tangential statistic caught my eye: the total per capita cost for all municipal services in 2009 was $690 – about $58 a month.)

What do you think? Is annual street reconstruction something that ought to be anticipated in the budget, or is it okay to pay for it with borrowed money?

Rating Good, Debt Level High Analysts Say Of Mt. Lebanon School District

A bond rating analyst praised the financial strength of the Mt. Lebanon School District, but warned about its high level of debt.

Standard & Poors, an off-Wall Street firm, gave the school district's $69 million bond issue a rating of "AA," or stable, based on its very strong wealth and income levels, strong local economy within the Pittsburgh area and strong financial position.

"It's always good to have an outside agency verify that you're in a strong financial position," said Jan Klein, director of business for the school district.

Link: www.pittsburghlive.com/x/pittsburghtrib/s_653852.html

Commission Weighing New Bond Debt

Commissioners in Mt. Lebanon are weighing whether to authorize a $4.4 to $4.5 million bond for street and sidewalk construction, and refinancing earlier debt.

The board discussed the bond on June 8. Some $2 million would be used to fund two years worth of street reconstruction, and a prior $2.4 million bond would be called and refinanced at a lower interest rate. Mt. Lebanon Finance Director William McKain estimated the municipality would save about $75,000 from refinancing. Other officials, however, say "wrapping" that 2004 debt will cost the municipality more money, not save money.

Link: www.thealmanac.net/ALM/Story/06-17-ML-bond-issue-B