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
- Local News
-
-
Proposed bill would expand use of traffic-light cameras
Some call it the hand of “big brother,” others are convinced cameras at signal lights would be effective in curbing red-light runners and ultimately saving lives.
-
Minister's trial date set
An issue has been resolved over the report from an examination of a girl allegedly taken by her mother to a Bedford motel to have sex with a traveling minister, clearing the way for a trial.
-
AP: Almost half of new veterans seek disability
America’s newest veterans are filing for disability benefits at a historic rate, claiming to be the most medically and mentally troubled generation of former troops the nation has ever seen.
-
Geistown beginning crime watch program
Residents will patrol Geistown streets in the coming weeks as part of a community watch program.
-
Persons of the Week: Nanty Glo vets will remember fallen comrades
Michael Kurtz, Tom Kasecky and Steve Kasecky will be among members of the Loy A. Douglass Post 3489 of the Veterans of Foreign Wars in Nanty Glo who will be honoring fallen veterans today, Memorial Day.
-
AG candidates face potential conflicts of interest
Both candidates for Pennsylvania attorney general have family ties that could pose a conflict of interest for the one who is elected as the state’s next chief legal officer.
-
Lawmakers: Capitol rallies unpersuasive
Nancy Richey stepped to the podium with a microphone at the Capitol rotunda with the hope that the right people would hear her message.
-
Richland closer to new chief
The search for Richland’s next police chief is winding down.
-
In brief: Thunderstorm downs trees, knocks out power
A late Sunday afternoon thunderstorm brought high winds, hard rain and hail to the Cambria-Somerset region.
- District Deaths May 28, 2012
- More Local News Headlines
-
Beryl Makes Landfall on Florida Coast
Service Dogs Help Wash. Soldiers Battling PTSD
Raw Video: Heckler Bursts in on Blair Testimony
Japan Farmers Plant, Seek Radiation-free Rice
UN Blames Syrian Forces for Shelling Houla
Raw Video: Gay Protest Blocked in Moscow
Vatican in Chaos After Butler Arrested for Leaks
Jimmy Carter Endorses Egypt's Election Results
Biden Addresses West Point Graduating Class
Dozens of Children Killed in New Syria Attack
Raw Video: Activists Allege Massacre in Syria
NJ Man Charged With Murder in Death of Patz
Support, Fun for Kids of Fallen Soldiers at Camp
Fugitive Penguin Caught, Returned to Aquarium
50 Years Later, Underground Fire Still Burning
Light Show Transforms Sydney Opera House
Raw Video: Unruly Passenger Restrained in Miami
Raw Video: Robber Uses Drive-thru Window
Raw Video: Dragon Arrives at Space Station
Calif.'s Coronado Named Nation's Best Beach
