County refinances bond issue for refund

The money will be used to make up for a shortfall in construction of the jail.
By MARY GRZEBIENIAK
VINDICATOR CORRESPONDENT
MERCER, Pa. -- Current interest rates are bringing Mercer County an unexpected windfall.
County commissioners announced at their meeting Thursday that they will refinance a bond issue to get a lower interest rate. This will bring them an immediate $1.3 million in cash, which they intend to use to make up a projected $1.24 million shortfall on construction of the new county jail.
The refinancing, technically termed "contractual refunding" of a 2001 bond issue, reduces the original 5 percent loan interest rate to an equivalent of 4.25 percent. Commissioners will get the savings in cash instead of a lower payment or shorter term for the bond, which is scheduled to be repaid by 2031.
Commissioners originally had borrowed the money to pay for the courthouse renovation, updating of district justice offices and construction of the new county jail.
Commissioner Olivia Lazor, however, pointed out the first two projects cost more than expected, affecting the money left for construction of the $21 million jail.
Commissioners hired Susquehanna Group Advisors, a national firm from Harrisburg, to handle the refinancing. Jay Wenger, the firm's managing director, said his firm has done similar refinancing in several other Pennsylvania counties. Professional fees and bond insurance for the refinancing will cost more than $100,000. Paper work is expected to be completed later this month.
Medical management
In a jail-related matter, commissioners approved changing management of jail medical costs to Southern Health Partners, Chattanooga, Tenn.
The current manager is an arm of the County Commissioners Association of Pennsylvania, which provides oversight on billing services and medical review of providers. Southern claims it can oversee jail health care for about $308,000 next year, compared with the $600,000 cost expected next year under the current managers.
Southern says it also can provide nurses at the jail for 12 to 16 hours a day. Currently there is only a nurse or a physician's assistant there three to four hours, three days per week. With the additional nurses, inpatient, emergency care and prescription drug costs are expected to decrease under Southern.
Warden Jeff Gill would like Southern to start when the new jail opens, and the current contract expires Oct. 22. A 90-day contract termination notice must still be given to the current provider, however. Commissioners do not expect CCAP to insist on the 90-day notice.
Other business
In other matters, commissioners:
USigned a contract with iSECUREtrac Corp., Omaha, Neb., to provide electronic monitoring equipment and services for the house-arrest program for three years. Cost will be borne by offenders.
UAgreed to change hospitalization brokers for some unionized employees to a Blue Cross hospitalization plan under Teamsters No. 21 and the Employers Welfare Fund, New Castle. Employees belonging to two United Steelworkers of America bargaining units as well as employees of Children and Youth Services and Local 668 of Service Employees International Union will be served by the new broker at a cost savings to the county, said Bill Boyle, director of administrative services. Coverage will be unchanged.
UGave formal approval to a four-year contract with the United Steelworkers of America's bargaining unit representing 25 emergency-911 telecommunicators. They also increased the number of personal days for all county employees from one to two per year.