Council hears PFM on refinancing strategy and approves engagement for municipal advisory services

PFM Financial Advisors gave a briefing to Williamsport City Council on long-range debt planning and the mechanics of re-entering the credit market, and council later authorized the firm’s engagement.

Melissa Maize of PFM told council the city has outstanding 2017 bonds that it could refinance next year to replace higher rates with lower rates and recommended early planning because re-entering the market after a withdrawn rating requires messaging and preparation. Maize said PFM often begins with a private, indicative credit review that can precede a public rating to avoid duplicative fees.

Maize summarized steps and costs: typical, straightforward municipal-advisory fees on similar work were described in the "$30,000 range," while total costs for engagements vary by complexity and size. She also noted that credit ratings and audits are factors that influence timing and interest costs and urged council to involve administration and PFM early in any project-specific work.

Council then approved a resolution authorizing an engagement letter with PFM Financial Advisors LLC to provide municipal-advisory services related to debt issuance and refinancing; the vote carried unanimously. Council members asked for PFM to return for presentations to council before any issuance and to work with administration on sensitivity analyses for different financing scenarios (for example, analyzing capacity under the city’s current governance vs. a potential home-rule charter scenario discussed in questions).