Lackawanna County looking to borrow almost $43M for roads, bridges, other projects
Sep. 6—Lackawanna County plans to borrow almost $43 million over the next two years to replace bridges, fix roads, repair a dam and install a new prison roof.
The projects also include renovating the courthouse, upgrading the Children's Library and installing more energy-efficient heating and air conditioning systems in county buildings.
The borrowing, totaling an estimated $42.97 million, will also mean issuing new bonds to refinance the 2024 payments on bonds issued in 2016 and 2017. That will save the county about $2 million in 2024, to deal with an expected 2023 year-end deficit, according to a memorandum authored by county chief financial officer David Bulzoni.
The notion of approving large-scale borrowing in a county commissioner election year immediately produced disagreement.
The county commissioners split 2 to 1 on moving ahead. Commissioner Chris Chermak, who is seeking reelection, voted no and Commissioners Jerry Notarianni and Debi Domenick, who are not on the Nov. 7 ballot, voted yes.
Chermak, who voted for a property tax hike in 2020, vowed he would not do that again for 2024, but predicted "a major tax increase" will happen because of the borrowing. He urged letting the next board of commissioners deal with the matter.
"We're two months away from an election," he said. "We could have three new commissioners here next year that are going to be saddled with trying to figure out how to pay for all this stuff. I just can't support trying to borrow all this money right now — $42 million? That's almost a third of our operating budget right now."
Notarianni agreed the borrowing is large, but said previous boards of commissioners should have taken on the projects long ago. Chermak agreed with that, but said he won't vote for a tax hike.
"That's not happening. Not happening," he said.
Domenick noted Bulzoni's support for the borrowing.
"We can't stop governing because an election is in the near future," she said. "We hired a CFO for a reason. He's very capable."
Chermak, who managed his family's business before being elected a commissioner, said business owners take advice from financial advisers.
"I respect what Dave is doing, he does a great job, but it's up to the commissioners to make the final decision," Chermak said. "In a $150 million operating budget, there's money to be saved somewhere."
Bulzoni said his job is to find solutions to problems and the proposed borrowing "addresses quite a few of those."
"What you will notice is that most, if not all of the projects, can really be categorized as critical need," he said.
Chermak questioned whether replacing the prison roof or renovating the courthouse qualify as "critical repairs."
Bulzoni acknowledged the county will likely face at least a deficit heading into the drafting of the 2024 budget, but said he doesn't "necessarily agree that we're looking at a massive tax increase supporting this project."
Delaying maintenance sometimes leads to higher costs later, he cautioned.
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