Payment made on nursing home debt

Commissioners agreed to refinance the county's outstanding bonds.
By MARY GRZEBIENIAK
VINDICATOR CORRESPONDENT
MERCER, Pa. -- Mercer County commissioners have paid an additional 349,809 on the debt owed by the nonprofit nursing home Woodland Place, bringing the total the county has paid to 1.5 million.
Commissioner Brian Beader also will replace Commissioner Olivia Lazor as the commissioners' liaison to the Woodland Place board of directors.
Beader, as commission chairman, has the authority to name the commissioners' representative. Commissioners sit on the board as part of the agreement made when they sold the former county nursing home to Woodland Place several years ago.
Beader said at Thursday's commissioners' meeting he hopes to get better information from Woodland Place now that he is chairman and added that he intends to work with the nursing home to prepare strategies and plans to help the facility's financial picture improve.
Last September, when commissioners paid a 205,664 installment on the debt, Woodland Place was able to come up with an additional portion of the payment.
But the facility has not been able to put anything toward this latest payment, commissioners said.
Doing renovations
Lazor commented that Woodland Place has been struggling in the face of reductions in Medicaid and welfare reimbursements and Department of Public Welfare allocations. But she said that it has a patient population of about 90 and that 11 of the 15 independent living apartments are rented. She added the facility is renovating a vacant building on its property into a business complex with an eye toward renting it to raise some cash.
Commissioner Kenneth Seamans said commissioners recently met with the nursing home board and asked for some changes and guarantees in their arrangement with the county.
Commissioners are making payments on the financially troubled Woodland Place's loan because the county guaranteed 8.8 million in tax-free bonds that the facility borrowed in 2003 for remodeling and updating the home.
Refinancing bonds
In an unrelated matter, commissioners agreed to what amounts to refinancing the county's 2.93 million in outstanding bonds. The action will substitute a 10-year rate of interest for the current one-month rate and is expected to net a potential savings for the county of more than 1 million. County Fiscal Director John Logan said the action was needed because the short-term rates are now higher than the long-term rates, a fluke that is expected to reverse itself. The 105,000 in fees for making the change will be paid by PNC Bank, Logan said.
The county took similar action in October 2005 and June 2006, which resulted in about 2.5 million in savings. Logan said the only potential risk to the county would be if the federal tax system was overhauled to eliminate tax-exempt bonds before the bonds are repaid in 2031.
Commissioners also gave final approval to 2007 Community Development Block Grant allocations. They are: 168,000 for Pymatuning Township sewage disposal plant equipment; 44,000 to Pymatuning Township water treatment equipment; 17,900 for the Literacy Council of Mercer County; 6,100 for the Alternatives for Women/Advocacy, Resources and Education; 3,500 for Medical Equipment Recycling, Farrell; 13,000 for Community Counseling Center, Hermitage; 4,000 for Community Food Warehouse, Farrell and 2,500 for Keystone Blind Association, Sharon.