The Mt. Lebanon Commission approved the issue of $7.5 million in municipal bonds, to pay for several projects in the municipality’s capital projects plan. More than half of the money will be spent on upgrading the swimming pool’s filtration system; reconstruction of two tennis courts, updated lighting for eight courts and reconfiguring two tennis courts into pickleball courts; improvements to Meadowcroft Park; and replacement of the boiler at the public safety center and the heating, ventilation and air conditioning system in the municipal building.
The remainder, about $3 million, will go toward the demolition and replacement of the South Parking Garage on Washington Road. In 2023, a structural analysis revealed that the garage only had a useful life of another five years. Demolition and replacement of the structure, at an estimated cost of $16.2 million, is expected to take about three or four years.
The funds should be available in July, and some of the projects have already been bid. “We’ll be able to hit the ground running and use the proceeds immediately,” said Mt. Lebanon Finance Director Andrew McCreery.
Mt. Lebanon’s strong financial position consistently earns a rating of Aa2 by Moody’s Investor Services, one of the world’s top financial rating services. This enables the municipality to sell the bonds at a lower interest rate.
“Our financial stability and our positive economic outlook is viewed very favorably,” McCreery said. “When Moody’s looks at us, they know from our historical financial presentations that we’re very consistent and disciplined in the way we do our finances. There’s not much variability. We have procedures in place to make sure we’re not falling below standards.”
One of the few factors preventing Mt. Lebanon from achieving the highest rating from Moody’s, Aaa, is the size of the municipality’s budget reserve. Moody’s recommends a reserve of 35 percent of the total operating budget, but “That doesn’t make sense for us,” said McCreery, who added that the municipality’s 15 percent reserve gives it the agility to move quickly on unanticipated projects, without increasing taxes.
“That works for us. We don’t need to overtax to get to that [35 percent] level, just to have it [the money] sit there.”
While the 15 percent reserve is more in keeping with a single-A rating, McCreery says other factors account for our higher status, including debt ratios and the complete funding of pensions and other post-retirement benefits. “We’re triple-A in enough other categories that we get a better rating.”
McCreery said the Commission has shown interest in future bond issues over the next few years, to fund recommendations from the municipality’s comprehensive plan, parks master plan and a few other initiatives.
In May, Allegheny County Executive Sara Innamorato presented a $50,000 grant to fund part of the municipality’s active transportation plan.
“We’re going to need to take some debt out to do some of those big infrastructure projects, and whatever else the Commission’s priorities are, McCreery said. “This isn’t the last you’re going to be hearing about bonds in the next few years.”