Lancaster County shuffles its debt
OKs $55.9M loan
By P.J. REILLY
Lancaster
Updated Mar 14, 2012 22:33

The Lancaster County Commissioners voted 2-1 on Wednesday to borrow $55.9 million.

Of that total, $23.3 million represents new debt.

The rest is part of a restructuring of old debt, which will result in a total savings of about $5 million for the county.

The new borrowing is intended to provide funds for a series of ongoing renovations to county buildings, construction of the new $6.4 million forensic center on Spring Valley Road in East Hempfield Township, bridge improvements and replacements and the farmland preservation and urban enhancement programs.

Commissioners Chairman Scott Martin cast the lone vote against the borrowing, stating he favored the debt restructuring and its associated savings, but that he opposed part of the new borrowing.

"We have tackled some big challenges and projects that we inherited using capital funds on capital projects in meeting the needs of future growth," Martin said. "We also have given away bond funds in programs that would not be deemed to be necessary."

Specifically, Martin has opposed borrowing money for farmland preservation and urban enhancement.

Those programs cost the county millions each year.

For 2012, the county has dedicated $3.85 million in borrowed funds for preserving farmland.

In 2010, the commissioners committed $2 million in borrowed funds to the county's urban enhancement grant program.

Under the program, municipalities across the county compete for money to assist them in completing projects aimed at improving developed areas.

The program was shelved last year when the county did not borrow any money.

It's proposed to be resurrected this year, but how much the county would spend on it has not yet been determined.

Martin said his votes against the farmland preservation and urban enhancement funding programs governed his vote Wednesday.

"To vote against a program, and then to go ahead and vote to fund those programs to me is a direct conflict," he said.

The two programs Martin opposes are critical to the county, Commissioner Craig Lehman said.

"Both farmland preservation and urban enhancement, I believe, are part of the county's overall strategy to maintain Lancaster County's character, both on the agricultural side and by making sure that our urban areas are livable," he said.

Commissioner Dennis Stuckey likewise has voted in favor of the two programs and said he believes the county is being financially responsible with its borrowings.

"We do have a few projects out there that we have to work on," he said. "As I look out over the horizon, I can see a time when we don't have to borrow any money, which will please me a great deal."

Including Wednesday's borrowing, the county now carries about $275 million in debt.

This year, the county expects to spend more than $23 million on debt service.

preilly@lnpnews.com

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