Blair County to borrow up to $144 million to fund three projects

Commissioners authorize bond issue to fund three projects

HOLLIDAYSBURG -- Blair County commissioners on Thursday authorized a bond issue borrowing of up to $144 million to pay for three projects, including construction of a county jail.

While the action paves the way to borrow as much as $144 million -- probably the largest bond issue borrowing inside Blair County's border -- Commissioners Chairman Dave Kessling said the intent is to borrow less and still be able to build the new jail and take on Lakemont Park dam repairs and courthouse energy improvements.

"I don't want people and the public to think that this is just the beginning and it's going to go higher," Kessling said. "It's not."

Commissioners offered no specific predictions on how the borrowing will affect future real estate taxes. An influencing factor -- how much the county pays annually on the debt -- should surface as the bond sale is completed and interest rates are identified. The closing is slated for the third week of October.

Bond counselor Jay Wenger of RBC Capital Markets said Thursday that the county's bond issue will be accomplished in two transactions -- one in 2026 and one in 2027 -- to be paid back over a 30-year period in level amounts.

"This is essentially like a home mortgage," Wenger said.

Borrowing in two phases, according to Commissioner Laura Burke, allows the county to avoid the impact of borrowing the full amount.

"But there will be a debt millage increase, I would say," Burke added.

Fellow Commissioner Amy Webster, who voted to authorize the bond issue borrowing, said commissioners have no alternatives.

"We have to do these things," Webster said.

Kessling agreed and said the county wouldn't be borrowing up to $144 million if prior commissioners had pursued efforts to address unpopular issues that were allowed to languish.

"The prison is (nearly) 260 years old," Kessling said. "It's inadequate. It's falling apart and we can't fix it."

The bond issue is also expected to provide money to address the condition of the Lakemont Park dam, which the county owns.

In late 2023, the county received a report indicating that the dam's condition, while posing no threat at that time, was falling below recommended standards. Since then, the cost of repairs has been estimated at $6 million, commissioners said Thursday.

But that estimate could be high according to Burke, who spoke of a prior estimate of $3.2 million.

Commissioners have also been interested in cutting energy costs and in May, chose McClure Co. to do an energy audit of county properties.

On Thursday, commissioners confirmed their interest in moving forward with energy improvements at the courthouse. That cost has been projected at $6 million, they said Thursday.

The cost of building a new jail -- on an 83-acre wooded site outside Duncansville above the former Inlow's restaurant -- is yet to be identified.

Commissioners on Thursday hired a new architectural/engineering firm, Henningson, Durham & Richardson of Pennsylvania, to take over the prison design initiated in 2025 by GFT, formerly known as TranSystems.

Kessling said HDR was provided with GFT's research and drawings for evaluation, use and/or recommendations.

"They believe there are areas they can adjust and improve," Kessling said.

He also acknowledged that commissioners had asked the new firm about the cost of building a prison -- and that a ballpark estimate might be available in about six weeks. The contract with HDR became effective Thursday.

A prior study of three potential prison sites -- all of which were abandoned -- projected the cost at $96.25 million to $123.16 million.

When Murphy N. DePompei, a public finance attorney with Dinsmore & Shohl of Pittsburgh spoke during Thursday's commissioners' meeting, she described the $144 million maximum borrowing as artificially inflated to give Wenger some flexibility in securing the best interest rates for the county.

DePompei also mentioned that the law prohibits the county from borrowing more money than needed for the targeted projects.

By borrowing in two phases, Wenger said the county will be in a position to initially invest some of the borrowed money and apply the generated revenue toward project cost or debt millage.

The county's end-of-2025 financial statements signed in June by Controller A.C. Stickel showed the county with $8.29 million in debt based on three borrowings, including one that will be paid off at the end of this year. The other two are scheduled to be paid off in 2029 and 2032.

Paying off those debts, Kessling said, could put the county in a position to use current debt millage revenue toward the new 2026 bond issue.

Burke, while predicting an anticipation of an increase in debt millage, spoke of her expectation of its affordability.

"Based on the good financial stewardship I've seen during my time here, I think we can afford it," Burke said.

Kessling also praised Webster and Burke for their support of the bond issue and efforts to address projects that he described as having been left go for years.

"I'm proud to work with them and I'm proud that they're taking the steps, along with myself, to take care of these things," Kessling said.

Mirror Staff Writer Kay Stephens is at 814-946-7456.