SMETHPORT – The McKean County Commissioners Thursday took the
formal action necessary to refinance some previously issued bonds
to take advantage of lower interest rates.

The actions will save the county about $80,000, with the exact
amount depending up prices on the March 15 closing date.

In passing the enabling ordinance, the county created a 2006
bond issue of $4,140,000 and refunded the entire remaining balance
of a 1998 issue and about 60 percent of a 2002 issue.ðð

Because part of the 2002 issue had been a refunding of an
earlier issue, investment laws prevented that portion from being
refunded again.

Debt payments and the length of the payments will remain the
same. Payments during this year will be lowered, resulting in a
refund of approximately $80,000.

In response to a question from a citizen, Commissioner Chairman
John Egbert said the savings will go either into a fund for capital
improvements or towards a contingency fund for unexpected expenses
the commissioners have been trying to build.

Bill Belitskus, who said he was trying to track money from the
1998 issue, asked where $100,000 that was earmarked to repair the
parking lot at Sena-Kean Manor had gone.

He also told the commissioners it would be a good idea if they
gave the public details of how money from both issues had been
spent.

Egbert pointed out the 2002 issue, which was used primarily to
construct the 911 Center and the Children and Youth Services
building, had also gone towards courthouse improvements, and that
about $50,000 is still left to be used there.

He told Belitskus that he could not account for all the money
offhand, but that if Belitskus came to the courthouse all records
would be made available to him.

Chris Stovic began the meeting by reading a long statement
accusing the commissioners of numerous violations of the law in
refinancing the bonds.

He charged the reason the refinancing was being done was because
the county could not make the payments and the action was necessary
to stave off bankruptcy.

“Do you deny you are not solvent?” he challenged Egbert, who
replied tiredly, “We are solvent.”

During Stovic’sðhalf-hour discourse, one of the two bond
counsels who presented and explained the transaction details, told
Stovic that his legal interpretations “fail miserably” and “You’re
not making sense … get an education.”

At one point Stovic was obviously confusing county bonds with
Solid Waste Authority issues.

He also charged the Solid Waste Authority’s payments to the
municipalities were illegal.

According to the bond counsels, the county’s borrowing rating is
exceptional, and Egbert said the county is in the second year of a
complete turnaround.

In the only other action of the 1 1/2-hour long session, the
commissioners appointed Director of Elections Judy Ordiway “deputy
chief clerk.” Ordiway took the minutes at the meeting in the
absence of Chief Clerk Audrey Irons.