Strafford County revenue subcommittee approves revenue and capital estimates after discussion of bonds, jail boarding and grant losses

The Strafford County delegation's revenue subcommittee on Oct. 12 voted to accept the subcommittee's estimates for county revenues and capital expenditures after a discussion that highlighted a newly issued bond, changes in nursing-home Medicaid payments, growing boarding revenue from federal agencies and several grant interruptions.

Ray Bauer, county administrator and nursing-home administrator, told the subcommittee, “We bonded yesterday, at the amazing rate of 3.35%,” and said the 10-year bond surprised staff because internal estimates had been about 3.95%. Bauer said five bids were received and staff were pleased with the result.

The bond discussion led subcommittee members to review existing bonded debt, bond fees and whether particular capital expenditures should be paid in cash or bonded. Bauer said current analysis indicates refinancing older short-term bonds would not be cost-effective because of remaining terms and fees.

The subcommittee also discussed revenue shifts at Riverside Rest Home. Bauer said Medicaid-related revenue increased after staff clarified resident acuity, producing what he described as “a big increase” that raised nursing-home revenue by roughly $1,300,000 year over year. He said that uptick was partly offset by declines in PSP, a Medicaid program, and that hospice and respite revenues follow different payment patterns and margins.

A second major theme was corrections revenue. Bauer said the county has increased boarding of federal inmates, including those from U.S. Marshals Service and Immigration and Customs Enforcement (ICE), and that staff are negotiating higher boarding and transport rates with ICE and the U.S. Marshals Service. He said efforts include creating a local processing center in the jail to reduce external transports and to make the facility a more viable boarding location.

A representative from the sheriff’s department described jail capacity and classifications, saying the facility can hold about 495 inmates under an optimal mix of classifications but that actual usable capacity varies. The sheriff’s department representative said the number of ICE detainees fluctuates, commonly between about 10 and 50, and that the jail currently houses roughly 30 ICE detainees with room to add roughly 20 more depending on classification and available beds. The representative also said ICE inspects the facility about eight times per year.

Committee members asked about transport revenue; one line-item discussed in the packet is an estimate of approximately $630,000 per year tied to U.S. Marshals transports. Bauer said increased transports raise both revenue and expense and that final rates are still under negotiation.

Members reviewed grant programs and recent grant interruptions. Diane Legere, finance director, and Bauer reported that several awarded grants appear secure: a $715,000 COPS (law-enforcement radio) grant and a $1,400,000 ARPA-related award remain in place, staff said. By contrast, a roughly $75,000 Department of Energy grant for solar planning was canceled after federal program interruptions; Bauer said the vendor notified the county that the award was withdrawn before final delivery. The subcommittee also discussed a long-running supervised-visitation grant that has expired and options to bring the program in-house to reduce operating costs.

The committee heard an update on opioid-settlement funding and medication-assisted treatment (MAT). Bauer said counties and cooperating cities previously received reimbursement for past MAT costs and that staff expect continued annual settlement payments but that timing and exact amounts are uncertain; he said staff hope future grant rounds will reimburse both past and ongoing MAT expenses.

After discussion, a motion to accept the subcommittee’s revenue and capital expenditure estimates passed on a roll-call vote of 6–0. Roll-call “yes” votes recorded in the transcript were: Haley; Barrington; Gilmore; Howard; Johnson; and Gonzales. The subcommittee chair noted the vote is a subcommittee recommendation that will proceed to the executive committee and then the full delegation for final action.

The meeting record shows staff will continue negotiations on boarding and transport rates with federal agencies and will report back to the delegation as those talks progress. Staff also urged members to contact county finance staff with follow-up questions about specific line items in the packet.

The subcommittee meeting closed after brief remarks and scheduling notes.