Steve Harnischfeger out as Hanover Area coach

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Hanover Township resident Paul Halesey works landscaping into holiday light display

<p>Luzerne County officials plan to close Monday on a $20 million loan needed to prevent mass layoffs and service cuts due to state budget impasse funding delays, said county Chief Solicitor C. David Pedri.</p><p>Pedri said the lenders and county council Chairwoman Linda McClosky Houck will sign the paperwork Monday.</p><p>A closing Monday will provide the county with access to funds to pay a $7.6 million debt repayment due Dec. 15, which was one of the most pressing concerns, Pedri said.</p><p>The county council stipulated the interest rate must be less than 4 percent for the next six months, but Pedri said Friday he did not have the final negotiated rate.</p><p>Pedri referred comment on the final rate to county Budget/Finance Division Head Brian Swetz, who could not be reached Friday.</p><p>The administration projected the interest rate would be around 3.5 percent because of a recent county credit rating downgrade imposed by Standard &amp; Poor&#8217;s.</p><p>Public Financial Management, the county&#8217;s outside financial adviser, had lined up a proposal to borrow the money at an interest rate of 1.3 percent, but that offer was withdrawn due to the rating downgrade.</p><p>Several county council members have publicly criticized the drastic downgrade, which reduced the county two notches from BB to BB+. It lowered the county&#8217;s financial position from investment grade to speculative, which is labeled as &#8220;junk&#8221; by some in the investment world.</p><p>Standard &amp; Poor&#8217;s cited its &#8220;worsening view&#8221; of county management and the county&#8217;s &#8220;political gridlock&#8221; and criticized both the administration for failing to sufficiently monitor county finances and the council for initially rejecting the $20 million loan to guarantee the Dec. 15 debt repayment would be met.</p><p>The county&#8217;s rating also has been placed on a credit watch list with &#8220;negative implications,&#8221; according to Standard &amp; Poor&#8217;s.</p><p>County Councilman Rick Morelli, who supported both the initial and approved loans, said at last week&#8217;s budget work session that he wants more information and justification for the downgrade. It was a &#8220;punch in the stomach&#8221; because many county council members have been trying to make decisions to get the county back on track financially, he said.</p><p>&#8220;Something just doesn&#8217;t smell right,&#8221; he said, describing Standard &amp; Poor&#8217;s explanation as &#8220;vague.&#8221;</p><style>
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<div class="neCaption">C. David Pedri </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2015/12/web1_pedri.jpg</photo0><caption0>C. David Pedri </caption0><photoCredit0></photoCredit0></div></div>
<div class="metaInfo"><bylineMeta><p>By Jennifer Learn-Andes</p><p>jandes@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.</p></shirttailMeta></div>

Luzerne County to close on shutdown avoidance loan Monday