Luzerne County fund balance minimum proposed

Luzerne County would have to maintain a set fund balance reserve under a proposed policy up for discussion at Tuesday’s county council work session.

The administration is suggesting the county build and keep an unrestricted general fund balance equal to at least three months of regular expenses.

Based on finances, this three-month threshold would require a fund balance of approximately $33 million, county Budget/Finance Division Head Mary Roselle said Monday.

Roselle emphasized this figure is an estimate because operating expenses fluctuate from year to year.

The county is approaching that target because it ended 2024 with a $27 million fund balance, Remi Omisore, a principal with outside county auditor CliftonLarsonAllen, told council last month.

Omisore had said the average fund balance is three months of expenses based on his firm’s experience. Credit rating agency Standard and Poor’s also looks favorably on fund balances of at least three months, county officials have said.

Reasons for the policy are stated in the resolution, which says the fund balance would:

• Provide sufficient liquidity and cash flow for daily operations;

• Mitigate the effect of revenue shortfalls, emergencies, economic downturns and other financial risks;

• Support credit worthiness and potentially lower borrowing costs;

• And help long-range financial planning and stability.

The county also could opt to exceed the minimum threshold “as deemed appropriate by county leadership and financial advisors” based on “local circumstances,” it said, citing potential state funding reductions, volatility of revenue sources or disaster exposure.

As part of the policy, status reports on fund balance levels would be required in the budget/finance division’s quarterly and annual reports, it said.

If the fund balance dips below policy targets, a multiyear replenishment plan would be developed to close the gap using spending cuts, revenue growth or, if available, infusions from one-time transfers, it said.

Reviews of the fund balance policy should be performed at least annually to determine if updates are warranted based on “evolving fiscal realities and best practices,” it said.

Standard and Poor’s had elevated the county’s credit rating from A- to an A rating with a stable outlook in February 2023.

Council would have to vote at a future meeting for the fund balance policy to take effect.

Tuesday’s work session follows a 6 p.m. voting meeting in the county courthouse on River Street in Wilkes-Barre. Instructions for the remote attendance option are posted under council’s online public meetings link at luzernecounty.org.

Honey Hole Road closure

In another work session discussion matter, the Pennsylvania Department of Transportation is seeking council approval to temporarily close portions of county-owned Honey Hole Road in Butler Township in the future for an Interstate 80 bridge replacement project.

According to the agenda, PennDOT is reconstructing the section of eastbound I-80 from the Route 309 interchange to the rest area at mile marker 270, and that project includes replacement of the eastbound and westbound bridges crossing Honey Hole Road and Nescopeck Creek.

Portions of Honey Hole Road under these bridges must be closed to replace the structures, it said. Detours are planned to accommodate the closures.

PennDOT expects closures and detours to begin in the summer of 2027, the agenda said.

Maps and other details about the plans are posted with the agenda at luzernecounty.org.

King’s College parking

Council also will discuss extending a lease with King’s College for the county’s upper parking lot on River Street across from the county courthouse.

Prior commissioners first enacted the parking arrangement in December 2003, with an original lease of $10,000 annually in the first decade and two additional five-year renewals at $11,000 and then $12,000 per year.

The most recent agreement was $15,000 for 2024 and $16,000 for 2025. The administration had recommended a shorter renewal in case the county identified a use for the lot, which is located between West Jackson and North streets.

The proposed lease on Tuesday’s agenda would be for 2026 only and require the college to pay $18,000 for the year.