Luzerne County officials announce “fiscal milestone”

Luzerne County officials gathered in the county courthouse rotunda in Wilkes-Barre Tuesday to announce the county won’t be temporarily borrowing funds at the start of 2025 to help pay bills until real estate tax revenue arrives.

Survival without an annual short-term tax revenue anticipation loan was identified as a “fiscal milestone.”

“For the first time in recent memory, I am honored to announce that our county will not be borrowing for a tax revenue anticipation note,” county Manager Romilda Crocamo said. “This decision is not just a number on a balance sheet. It is a testament to our collective commitment to fiscal responsibility and prudent financial management.”

County Budget/Finance Division Head Mary Roselle said the county is now in a position to manage funds more efficiently and maximize interest rates on existing funds.

County Controller Walter Griffith said the county’s tax anticipation loans collectively totaled $211.5 million since the county’s 2012 switch to a home rule government structure, resulting in the county’s payment of $554,223 in interest over that 13-year period.

Tax anticipation loans also were used before home rule.

According to a chart compiled by Griffith, the county borrowed $18 million annually from 2012 through 2016, $17 million in 2017 and 2018, $16 million in 2019 and 2020, $14 million in 2022 and 2023 and $11.5 million in 2024.

Roselle noted the county repaid this year’s loan within three months to save on interest.

Also speaking during the announcement, Council Chairman John Lombardo said the county’s ability to cover bills without a temporary loan is a “monumental achievement” resulting from years of keeping spending below revenue.

County council has also resisted the temptation to borrow funds for capital projects so the county can rid itself of inherited debt, Lombardo said.

The county ended 2023 with a $1.63 million general fund operating budget surplus, and it is on track to free up approximately $26 million annually after debt is repaid in 2030. The county’s Standard and Poor’s credit rating was elevated from A- to an A rating with a stable outlook in February 2023.

Council Vice Chairman Brian Thornton described the elimination of a tax anticipation loan as a “bellwether” that should show residents the county is “financially sound.”

Crocamo said all county branches are working together to control spending and making “thoughtful decisions.”

“Luzerne County is on the right path,” she said.