News

July 9, 2008

County closes on $87M+ bond deal

Commissioners to spend $72 million on various projects and deficit.

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter
Jennifer Learn-Andes on Facebook   |   @TLJenLearnAndes on Twitter

Luzerne County Commissioners now have $72 million to fund capital projects and debt.

Commissioners closed on an $87.89 million bond package on Tuesday. The borrowing had been stalled by former Wilkes-Barre resident Tim Grier’s legal challenge, which was eventually withdrawn.

Costs associated with the borrowing include $3 million for bond insurance and $723,000 for lawyers and other financing-related entities.

The $723,000 includes payments to the following, according to a spread sheet released by the county Tuesday: Hourigan, Kluger & Quinn, PC, $10,000; Stevens & Lee, $175,000; attorney Peter J. Moses, $80,000; Joseph J. Joyce, $25,000; Cozen O’Connor, $150,000; CaseCon Capital Inc., $180,000; and Francis X. Trainor, $36,000.

The county also put $6.1 million in a debt service reserve fund. Another $5.4 million is labeled “capitalized interest.”

About $18 million of the $72 million bond proceeds will be used to cover the county’s budget deficit.

The county faces an estimated $23.4 million deficit in the 2008 budget adopted by Commissioner Greg Skrepenak and former commissioner Rose Tucker. Commissioners had promised to plug that deficit with debt restructuring and bond borrowing.

Another $20 million of the bond will fund expansion at Luzerne County Community College, though the college will reimburse the county $10 million.

The remaining funds will be spent on the following projects, according to a breakdown released Tuesday by county officials:

• Building repairs/maintenance, $4.2 million

• Courthouse gardens, $4 million

• Courthouse exterior renovations, $4.4 million

• Courthouse elevator renovations, $220,000

• Courthouse interior study, $100,000

• Hazleton annex, $2 million

• Roads/bridges, $4.4 million

• Computerization/communication, $2.5 million

• Records management, $2.5 million

• Recreation, $1 million

• Capital grants, $1 million

• Airports, $195,000

• Voter machine warehouse renovations, $1 million

• Nesbitt Park upgrades, $850,000

• Human service/Valley Crest space study, $50,000

• Vehicles, $70,000

• Wilkes-Barre Wireless, $425,000

• CEO Warehouse, $500,000

• Courthouse interior renovations, $1.1 million

• Hoyt Library, $150,000

• Exeter flooding corrections, $535,000

• 2006 flood recovery fund, $3.7 million

Grier, who has since moved out of the area, had filed a court challenge to the borrowing because he believed the county was too vague about how the money would be spent. He withdrew the challenge in March.

Commissioner Chairwoman Maryanne Petrilla had promised to disclose how the bond will be spent and to provide periodic reports on how much bond money is remaining.

Juvenile detention lease to be terminated

Luzerne County Commissioners plan to vote at 10:30 a.m. today to terminate the controversial Pittston Township juvenile detention center lease.

A separate vote to reserve 12 detention beds is also on the agenda, county officials say.

Commissioners wanted to get out of the $58 million, 20-year lease with PA Child Care because the state Department of Public Welfare has reduced reimbursement for the facility, arguing that PA Child Care is receiving too much profit. The lease expires in 2024.

However, county officials want to reserve 12 detention beds so they don’t have to send juveniles outside the area as they await a judge’s ruling on placement or other sentencing.

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