Cambria gets judges’ OK for $6M loan
By David Hurst, dhurst@altoonamirror.comEBENSBURG - A Cambria judges panel has approved the commissioners' request to borrow $6 million to get the county through the rest of the year.
The loan is needed to pay bills and meet payroll through December, according to commissioners, who briefed judges Gerard Long, Timothy Creany and F. Joseph Leahey in a hearing Tuesday.
''This decision ... is essential to the continued operations of the county,'' President Commissioner P.J. Stevens said. ''It ensures we can cover all of our obligations through the end of the year."
The board was busy Tuesday, taking steps to get the loan through as quickly as possible.
It will be a nearly month-long process, Stevens said, beginning with an expected board vote Friday on an ordinance to borrow, and includes other formalities, including running the plan by the state.
The county plans to borrow the $6 million from First Commonwealth Bank for five years at an estimated rate of 4.9 percent, Chief Clerk Michael Gelles said.
Stevens is hopeful the county will have the loan by mid-December. Revenues coming into the county will be enough before then to meet the most crucial obligations such as payroll, they say.
Both the board and Laurel Crest's county-appointed administrator made it clear that Laurel Crest Rehabilitation & Special Care Center was to blame for the end-of-the-year crunch.
The county already has been forced to funnel more than $5.8 million to the nursing home to meet obligations, mainly because the 370-bed home's low census often hovered around 260 residents this year.
The commissioners have admitted their 2008 budget for the home was ''unrealistic,'' and didn't give administrators a chance at breaking even.
Stevens told the judges the home will be staffed and budgeted for 274 residents but have flexibility to change that if needed.
They've already taken steps to ''right-size'' the facility, cutting 39 positions - a move expected to lay off two dozen employees.
''The key,'' Stevens said, ''is to have Laurel Crest on the right track on Jan. 1 so we're not making up for lost ground."
The three Cambria County judges bid the board ''good luck'' after making their decision.
''We all wish Laurel Crest well,'' Long said, ''because we think it's an excellent facility and an asset to the county."
Mirror Staff Writer David Hurst is at 946-7457.
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Stormin
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11-19-08 6:42 AM
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This year. What about next year? Blair is in as worse a condition. Recently some county residents, were hit hard with a 51% overnight property tax raise. That will soon occur here. making my property tax, go from $380.00 annually to about $600.00 And those on 6th avenue, pay a commercial property tax, will go from $700.00 to about $1050.00 annually. I have always wondered why those on 6-7&8th AVE. Do not get a rezoning. It's absurd to pay for something your not. Nor will ever be again. I watch daily, as this town and nation progressively crumble's . The only progress taking place.
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