EBENSBURG — EBENSBURG – Cambria County has lined up a $6 million loan to replenish the drained general fund because of losses at Laurel Crest, the commissioners said Friday.
A month ago, the commissioners revealed that they would need to seek the $6 million loan – which must have court approval – because of operating losses at the county nursing home.
Controller Ed Cernic said that Cambria has about $3 million in bills sitting on his desk awaiting payments.
Those payments have been delayed until the loan is approved.
Also on Friday, eight Laurel Crest employees were laid off in belt-tightening measures.
Earlier, the workers compensation director there was furloughed.
A total of 39 positions are to be affected in the work force reduction, although some will be though attrition or some, with necessary certifications, are being absorbed into nurse aide positions.
In addition, the commissioners said that Friday’s $1.6 million payroll for 1,479 employees was met with revenues that had flowed into the county treasury in the past two weeks.
Two weeks ago, the county met the payroll, mainly with a $1.4 million state reimbursement for county Children and Youth Services.
Cambria expects to petition the court this month for approval on the loan, Assistant County Solicitor Randy Rodkey said.
The county wants to borrow the money from First National Bank at a “very good interest rate a competive rate,” President Commissioner P.J. Stevens said.
It will be repaid over five years, he said.
Although the exact interest rate will not be known until closing, the bank indicated it would have been 4.9 percent if the deal had been completed Friday, Mike Gelles, county finance director, said.
Gelles said that since the last payroll, Cambria had received $1.15 million in state reimbursements which were used to meet the payroll – $800,000 for CYS expenses and $550,000 for county court operations.
In addition, other revenues have come in, including fees paid to row offices and inmate housing costs paid by other counties and the federal government for housing prisoners at the county prison, Gelles said.
He estimated that$570,000 remained in the general fund Friday after the payroll was met.
The commissioners, who previously admitted that Laurel Crest 2008 budget had been unrealistically in projecting higher census than materialized, again said that the nursing home would be on a break-even footing in 2009.
As of Friday, there were 267 residents at Laurel Crest, which has seen a slight increase in the daily census. In October, the daily census average 258 residents, officials said.
Without the Laurel Crest losses forcing the county to use general revenue funds, Cambria’s 2008 budget would be “solid” with revenues and expenses going as expected, Stevens said.
Cernic, however, suggested that the $6 million loan is a “bridge to get us through tough time until the end of the year - maybe.”
Local News
Cambria arranges $6 million loan
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