Luzerne County government debt report released

Luzerne County government is in a “very good position” paying off debt, county financial advisor Scott Shearer, of Harrisburg-based Public Financial Management (PFM), told council during its work session last week.

With this year’s payment factored in, the county owes $217.95 million in principal and interest, his report said. Annual debt payments range from $26.4 million to $26.7 million until 2030, when a final $6.2 million is owed.

Shearer said the average interest rates on the county debt range from 2.17% to 3.68%.

County officials have held up debt reduction as a major achievement in recent years because outstanding debt had ballooned to $466 million in 2009, before the 2012 switch to home rule. The debt stemmed from years of borrowing to cover capital projects, deficits and other spending.

The PFM presentation is posted with council’s Oct. 25 meeting agenda at luzernecounty.org.

The report also touches on the county’s success maintaining an investment-grade, A- credit rating from Standard & Poor’s since October 2019. The rating agency may conduct annual surveillance at its discretion, it said.

The county could strive to improve its rating to an AA category or the highest triple-A by maintaining “budgetary balance while addressing rising expenditures,” Shearer said.

Downgrading of the rating is possible if the county adopts structurally imbalanced budgets or materially weakens reserves, he said.

Speaking after the PFM presentation, county Controller Walter Griffith described the report as “fabulous” and said it is evidence the county’s home rule structure works “in certain areas.”

American Rescue

County Council is set to approve parameters for its review and screening of federal American Rescue Plan applicants during Tuesday’s 5 p.m. voting meeting.

Council members are set to undergo training at 4 p.m. that evening to ensure their evaluation of 139 applications is merit-based as required.

County consultant Robin Booth recommended the training and came up with a customized process for council to review and score applications, saying this is the first municipal entity of many she’s assisted that is opting for the entire 11-member elected body to handle the screening.

The full council is taking on the task because there was a concern questions or disagreements would surface later if all 11 do not participate and instead relied on an administration or council committee to make recommendations.

Outside requests total $218.9 million, which far exceeds the $94.3 million left for council to award after deducting prior American Rescue earmarks. An additional $17.9 million in requests were submitted from within county government.

Public defender

Also scheduled for Tuesday’s meeting is a vote on Chief Public Defender Steven Greenwald’s request to transfer $42,000 in unused salary funds from his budget to the county court so it can secure legal defense for indigent residents charged with misdemeanors.

Greenwald’s office stopped providing required representation for nonincarcerated, income-eligible individuals charged with misdemeanors due to significant staff attorney vacancies in his office. The office continues to provide defense for indigent citizens charged with felonies and also inmates facing misdemeanors.

County Court of Common Pleas President Judge Michael T. Vough has said the situation cannot be ignored because the county is legally required to provide the representation. Once the transfer is executed, the court would hire four contract attorneys paid $3,500 per month to represent the indigent, Vough has said.

Greenwald has cited compensation as a main reason for recruitment and retention issues. Assistant public defenders and district attorneys are unionized, and their collective bargaining agreement expires the end of this year.

Meeting schedule

Tuesday’s meeting is in the county courthouse on River Street in Wilkes-Barre, with instructions for remote attendance posted under council’s online meeting link at luzernecounty.org.

Three proposed 2023 budget presentations will follow the voting meeting focused on county court branches, correctional services and general government.

Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.