Commissioners expected to hire investment advisor
The Fayette County commissioners are set to decide which of four companies to use for investment advice for either reissuance or refinancing of nearly $16 million in current bond debt, which could potentially save money by lowering an ever-increasing interest rate. During Tuesday’s agenda meeting, the commissioners voted to place on Thursday’s agenda a motion to award a contract to an investment advisor to provide professional services of the current bond issues known as the Washington County Authority Bond at $4.6 million and the Fayette County General Bond at $11.38 million.
County manager Warren Hughes said the four companies that submitted proposals included Janney Montgomery Scott LLC, JP Morgan Securities, Public Financial Management Inc. and Susquehanna Group Advisors Inc.
Late last year, the issue arose. At the time, Bob Calisti of Fayette County Mental Health/Mental Retardation said MH/MR borrowed $2.8 million from the fund for construction of its new building and the interest rate has jumped from between 2 and 3 percent to more than 5 percent since September 2004.
Although the commissioners were set to go with JP Morgan Securities in March on the advice of solicitor Joseph E. Ferens Jr., they opted to solicit competing proposals after Commissioner Vincent A. Vicites said a request for qualifications should be done prior to entering into an agreement.
Regarding the history of the issue, in 2000, the county opted to participate in a $9 million Washington County bond pool with a fluctuating interest rate. Vicites previously said the idea behind tapping into the bond pool was initially to use money for infrastructure improvements. Vicites said he initially had concerns about a fixed versus variable rate. He said the payments had gone from $2,000 to $16,000 per month.
In other items, the commissioners heard a request regarding establishment of a Fayette County Polka Festival. Joseph Vrana said he wanted to hold the festival at German-Masontown Park, but opted not to because of vandalism.
He said the festival, which will be held the Sunday after Labor Day, would include at least three bands, and said he wants to hold it in either Storey Square in Uniontown or at Nemacolin Woodlands Resort & Spa in Farmington. Vrana said the festival, which would include a ticket price of $15, would benefit All Saints School of Masontown.
Commission Chairwoman Angela M. Zimmerlink said Storey Square is run by the city and Vrana would have to speak with Commissioner Joseph A. Hardy III about holding the festival at Nemacolin Woodlands. She urged him to contact the appropriate people to discuss where to hold the festival.