Commissioners weigh multi-borrowing, reserves and phased debt for proposed Lancaster County jail

PFM Financial Advisors presented multiple financing strategies for the proposed Lancaster County Correctional Facility (LCCF), including single borrowing, multi-borrowing with capitalized interest, use of reserves, and debt restructuring. Garrett Moore said the choice of scenario will depend on the interest-rate environment and the construction draw schedule.

Commissioner Joshua G. Parsons said he is "leaning toward a multi-borrowing approach rather than a single borrowing," adding that phasing in debt service would provide a gradual glide path for future annual budgets. Commissioner Alice Yoder also supported multi-borrowing and phasing in debt service but said she is "inclined to not use County reserves, or to use them only minimally," citing other county funding priorities and Capital Improvement Program needs. Chairman Ray D'Agostino said he preferred a middle-ground scenario (Scenario 4) and cautioned against imposing too large a burden on taxpayers over the next few years.

Moore listed key decision points for the board: number of financings, use of capitalized interest, use of county reserves or interest earnings, debt-service phase-in period, and potential restructuring of existing debt. He reiterated that timeline milestones such as release of bid documents, receipt of bids, and a parameters or debt ordinance will shape timing and pricing if the county enters the bond market.

Next steps discussed included consideration of a reimbursement resolution, release of bid documents, receipt and approval of bids, and, when appropriate, adoption of parameters or debt ordinances to allow bond pricing and settlement.