Lancaster County commissioners on Wednesday unanimously voted to authorize a $34 million bond issue to provide funds for a variety of projects.

And, thanks to historic low interest rates and two federal government incentive programs aimed at municipal borrowing, the county got a sweet deal on the bond issue.

According to Lou Verdelli of RBC Capital Markets, who helped prepare the bond issue for the county, the borrowing in a normal market probably would cost the county about $30 million in interest over the 20-year payback period.

Under the current depressed financial conditions, however, and with the federal incentives built in, the bond issue will cost the county about $11 million in interest over 20 years, Verdelli said.

"Given all the things on our plate, I think it's safe to say this is responsible borrowing at this particular juncture," Commissioner Craig Lehman said.

The bond funds will be used for, among other projects:

• Building a forensic center and morgue at Good Drive and Route 30 in East Hempfield Township — a project which is supposed to begin in 2011.

• Renovating the county building at 40 E. King St.

• Providing money to the county's farmland preservation and urban enhancement grant programs.

• Reimbursing nearly $9 million paid to Dr. Ira Trocki as part of a settlement struck last year between the county and the former owner of the county's administration building at 150 N. Queen St.

Trocki had sued the county over the $8.3 million he was paid when the county took the building from him by eminent domain in 2004. He believed the building was worth more.

The county paid Trocki under the settlement last year with bond funds that had been dedicated to other projects. That money will be replenished with funds from the current bond issue.

• Upgrades to the county's emergency radio system.

The commissioners believe the $34 million borrowing should cover the county's needs for the next two years.

"We don't anticipate any borrowing in 2011," commissioners Chairman Scott Martin said.

For 2010, the county is paying about $20 million in debt service.

The new borrowing will add $2.3 million to the county's annual debt load, but no payments on it are due until 2012.

By that time, Commissioner Dennis Stuckey said, the county's total debt service should be reduced a bit, so he does not expect the annual debt payment in 2012 to increase by the full $2.3 million over this year's load.

In other business Wednesday, the commissioners unanimously voted to enter into an agreement with the city that commits the county to installing a screen in the sewer main leading out of the county prison to prevent nonsanitary solid waste from reaching the city's North pumping station and, ultimately, the sewage treatment plant.

Inmates for years have been flushing items such as sheets, clothes, rags and shoes down their prison toilets.

Those objects can clog the city's sewer lines and foul pumps and motors at the pumping station and sewage treatment plant.

Earlier this year, the commissioners pledged $250,000 to fix the problem.

preilly@lnpnews.com