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HomeMy WebLinkAbout2026-06-24 Commissioner Minutes WEDNESDAY, June 24, 2026 The Franklin County Commissioners met on Wednesday, June 24, 2026, with the following members present: Dean A. Horst and Robert G. Ziobrowski. Commissioner Horst stated that Commissioner Flannery would not be here due to a prior commitment. He then presided and after calling the meeting to order, a Moment of Silence, and the Pledge of Allegiance, proceeded with the business of the day. On a motion by Robert G. Ziobrowski; Seconded by Dean A. Horst; the Board unanimously approved to adopt the agenda. Chairman Horst called Prison Board to order at 10:03a.m. Prison Board was adjourned at 10:04 a.m. There was public comment from Valerie Jordan who noted that the County was not spending much from the General Fund and urged the Commissioners not to increase the senior truggle with a 50% increase. She emphasized the significant need within the county and encouraged the Board to keep the meal prices affordable to support vulnerable seniors. She also shared accessibility and suggested the County consider owning a building in the future to reduce rental costs. Ms. Jordan opposed any detention center in the county, stated concerns about a community member being deported, and concluded that the County was not financially benefiting from its arrangement with Immigration and Customs Enforcement (ICE). There was also public comment from Harold Wissinger Jr. who stated that he wished to gra Wissinger explained that many military records were lost in a 1970s fire, making it important to disability prior to the Americans with Disabilities Act (ADA) and emphasized the need to protect disability rights. Mr. Wissinger urged the Board and the public to speak with federal representatives to ensure continued support for individuals with physical and mental challenges. Ms. Jordan spoke again stating that her father, a World War II veteran, had been injured in combat and that she had been unable to locate his military records. She reflected on his difficult upbringing and strong character, praised the values of his generation, and stated that Mr. On a motion by Robert G. Ziobrowski; Seconded by Dean A. Horst; the Board unanimously approved to adopt the consent agenda to include: Minutes from June 17, 2026. Vouchers in the amount of $775,627.57. Quote between the County of Franklin and PhivTech Solutions to provide network cabling in the new location for Aging and the Chambersburg Senior Activity Center at a cost of $23,535.25. This will be paid by the Aging Block Grant. Business Associate Agreement between the County of Franklin and Hopkins Software by the General Fund. Agreement between the County of Franklin and Illuminated Integration to add For the Record (FTR) digital recording software to the Franklin County Jail courtroom. Adding FTR to these spaces will increase the Courts' ability to capture and preserve the record of court proceedings. It will also expand Court Administrations ability to schedule Courtroom Technicians, as we are currently unable to assign the Courtroom Technicians to any other location outside the New Judicial Center as they do not have FTR in these spaces currently at a cost of $4,955.62. This will be paid by the General Fund. Supplemental appropriation to increase the calendar 2026 budget to reflect additional revenue received from the Department of Drug and Alcohol Programs (DDAP), as well as the corresponding County Match and associated expenditures. The increase of $45,000.00 to the General Fund is required matching on the additional state revenue received. Engagement letter between the County of Franklin and Zelenkofske Axelrod, LLC for the independent audit services for the year ended December 31, 2025, including the audit of the County's GASB 34 financial statements and the County's Single Audit, required for all programs receiving federal and pass-through funds at a cost of $113,559.00. This is consistent with the multi-year contract signed September 21, 2022 at a cost of $32,647.00. A portion of this will be paid for with federal and state programing funds. The remainder will be paid for with the General Fund. Agreement between the County of Franklin and Environmental Systems Research Institute for the renewal of the County's ESRI maintenance contract to support ongoing collection, maintenance, and analysis of geographic data. This application is necessary for many county functions, such as, NextGen911 mandates, 911 dispatch, parcel mapping, and addressing. It is also provided as a shared resource with municipalities at a cost of $63,253.00. This will be paid by an allocation across multiple fuds, including the General Fund. Agreement between the County of Franklin and Pennsylvania Commission on Crime and Delinquency for Crisis Intervention Training provided by The Lincoln Center over the course of the grant between June 17, 2026 and September 30, 2027. There is no cost to the County. Agreement between the County of Franklin and Pennsylvania Commission on Crime and Delinquency for Franklin County Adult Probation Department to use Justice Reinvestment Initiative funding to improve our supervision practices and our programs effectiveness. With these efforts we hope to improve outcomes for the individuals under our supervision. No cost to the County. Agreement between the County of Franklin and Behavioral Health Link to provide a software platform that will assist the crisis intervention system in allowing for more crisis care coordination. The crisis coordination platform ensures that every handoff, 988 call center, mobile crisis response, walk in, and follow-up care coordination, shares the same real-time story. The data will be collected to assist in future system planning across disciplines at a cost of $86,250.00. This will be paid by the Community Mental Health Services Block Grant American Rescue Plan Act of 2021. Agreement between the County of Franklin and Thomson Reuters for online legal reference resources. This is a professional service. The Courts, Magisterial District Judge's, Commissioners' Office, District Attorney, Public Defender, Domestic Relations and Children & Youth all use this service and share in the cost. This renewal will be for two years at a cost of $8,607.57 a month for the first year and $9,037.95 a month for the second year. This is primarily paid by the General Fund with a small contribution from the PA Bureau of Child Support Enforcement and State Act 148. The Board reviewed regular agenda items. Assistant County Administrator John Thierwechter provided a high-level overview of each of the actions. Children and Youth Director Minnie Goshorn explained that the County was contracting with a new program to address ongoing challenges in placing teenagers, noting that this provider would accept a child for whom no placement was currently available. She reported statewide regulatory changes would shift residential staffing ratios from a one staff to six children ratio, leading to increased provider costs. Rates across the state were ranging from $350.00 to $1,200.00 per day and the County $130.00 per day. On a motion by Robert G. Ziobrowski; Seconded by Dean A. Horst; the board approved the agreement between the County of Franklin and Harmony Heights Housing LLC for Placement services for Children and Youth Services and/or Juvenile Probation. The provider offers multiple levels of care, each with a corresponding rate structure. Rates increased by an average of 5% across all levels of care. This contract is state funded with the applicable county match which will be paid with General Funds for the time period of June 1, 2026 through June 30, 2026. On a motion by Robert G. Ziobrowski; Seconded by Dean A. Horst; The board approved the reappointment of Keith Baker to the South Central Workforce Development Board for a three (3) year term through June 30, 2029. Human Resources Generalist Charles Martin presented the Employee of the Month for June. The Franklin County Commissioners, on behalf of the STAR (Special Thanks And Recognition) Committee proudly presents the Employee of the Month award to Ms. Ellen Hill. Ms. Hill has been employed with Franklin County since May of 2023. She currently serves as a Purchasing Assistant in Procurement. The selection for the June 2026 Employee of the Month was determined by the STAR Committee. There were 11nominations, four of which were for Ellen. Mr. Martin read the nomination forms which are attached to these minutes. Ms. Hill stated that she works with a great team which makes it easy. Commissioner Horst stated that Ms. Hill does a great job, and he always enjoyed walking into her office and having conversations and seeing how the whole process works. Commissioner Ziobrowskirepeated some of her top qualities of knowledge, professionalism and attitude but he admitted she had him at budget awareness. Mr. Thierwechter introduced John Frey from PFM Financial Advisors for a presentation on Bond Refinancing. PFM had not only assisted the County in issuing bonds for its many recent capital projects but also continually monitored all outstanding debt for potential refinancing opportunities. He later in the year, which could result in substantial savings. Mr. Frey stated that preliminary estimates indicated approximately$60,000.00 to $65,000.00 in annual savings, reflected as reduced future debt service payments rather than a direct payment to the County. He emphasized that interest rates were not yet locked in and that the team would continue monitoring the market to maximize savings. He reviewed the anticipated timeline, noting that the p administration, PFM, and the legal team to begin preparing the necessary financial and legal documents. This prepa where the County currently held a strong AA rating. He indicated that the goal was to present a parameters bond ordnance for approval at the August 6, 2026meeting. This ordinance would authorize the bond issuance in advance, consistent with Pennsylvania borrowing practices, while allowing flexibility to lock in interest rates later. Subject to approval, the bond sale was expected to occur on August 18, 2026 competitive online auction platform, with settlement anticipated approximately 30 days later. Mr. Frey noted that all required documents needed to be drafted in advance to allow the County to act quickly when market conditions were favorable. He confirmed that PFM would remain in close communication with the County regarding interest rate movements and any factors that might warrant adjusting the sale timeline. His analysis is made a part of these minutes. Commissioner Ziobrowski stated that to many people, including himself. He reviewed the Co had been conducted through an internet auction, which he believed saved the County a significant amount of money. He recalled that initial interest rates on some of those bonds had been below three percent. He clarified that municipal bonds differed from a traditional home mortgage because each year of a bond issue involved a separate maturity, each with its own interest rate. He further explained that refinancing eligibility was tied to call dates, as investors required assurance that their expected interest payments would not be cut short immediately after purchase. Commissioner Ziobrowski noted that their financing proposal involved selectively targeting, or cherry-picking, the higher interest maturities from the 2018 issue. He stated that as the maturities extended further out, the interest rates increased because investors demanded higher yields on longer-term money. He emphasized that refinancing those higher- rate maturities at lower rates was the purpose of the current effort. Mr. Frey stated that was accurate and great questions and informative, that bonds are different than mortgages and other bank loans and that is why it is more complicated. Commissioner Horst stated that the explanation provided was helpful to him and that, in his view, the matter ultimately camedown to two factors: savings and cost. He noted that the refinancing proposal appeared to generate approximately $513,000.00 in savings but commented that no information had yet been provided regarding the associated costs. Mr. Frey clarified that the projected savings figure already reflected all associated costs. He explained that the fees and commissions required for the refinancing were built into the calculations, meaning the approximately $513,000.00 presented to the Board represented net savings to the County. Commissioner Horst stated that th he thinks it is a smart move and encouraged to move forward to be ready on August 6. He asked Solicitor Elliott Sulcove if any action needed to be taken. Solicitor Sulcove stated that the action would come when the ordinance is presented. Mr. Thierwechter introduced Fiscal Director Janelle Friese and Chief Financial Officer Teresa Beckner to keep everyone well acquainted with the Financial Statement and Audit Process. Their presentation was made a part of these minutes. Commissioner Horst commended the presentation, stating that it was very well done. He said he especially appreciated the examples used to explain the fund level and component units, noting that the visuals and comparisons helped him better understand the concepts. He remarked that the explanation painted a great picture and allowed him, and others who might struggle with the complexity, to fully grasp the information. He concluded by stating he had no further questions. Commissioner Ziobrowski stated that he had both a comment and a question. He referenced earlier quotes shared by Mr. Wissinger and added that he wished to quote both his father and w your jewelry or know your remarked that Ms. Beckner and Ms. Friese, in matters of finance, was their jeweler. that verification. He emphasized that he had great confidence in their work, while acknowledging that the material was complex and often difficult for Commissioners to fully grasp. He added that the audit process, though sometime unwieldy, offered reassurance. He then asked a question regarding components units, such as the Conservation District, which the County helps fund but only represents a small portion of their total budget. He inquired whether, in simple terms, if such a component unit were to mess up, would the County be responsible. Ms. Beckner explained that component units, such as the Conservation District, underwent their own independent audits, and any issues would appear in those audit reports. She noted that y audited. Commissioner Ziobrowski asked if it would affect just a note that goes on the audit to be careful of the component unit. Ms. Beckner stated that the County never had to address that and hoped never would have to address it. Commissioner Ziobrowski asked whether the same reporting principles applied to other entities that the County funded. He referenced the decision made decades earlier to support economic development through the creation of a 501(c)6 organization rather than forming a county department, noting the County'sannual stipendto the Franklin County Area Development Corporation (FCADC), which he described as a worthwhile investment. He emphasized that although the organization operated under the name Franklin County Area Development Corporation, it was not part of the County government. He then asked whether such an entity would be considered a component unit. Industrial Development Authoritywas. During new business Commissioner Ziobrowski stated that during public comment, the senior lunch contributions at the Senior Center had increased from $2.00 to $3.00. He clarified that the actual cost to the county was approximately$4.80 to $4.88 per meal and emphasized that the contribution remained voluntary. He noted thatsome cost containmentmeasures were necessary and that many seniors were able to pay the $3.00 contribution for a meal that cost significantly more to provide. The meeting was adjourned at 11:07a.m. on a motion by Robert G. Ziobrowski; Seconded by Dean A. Horst. John K. Thierwechter Assistant County Administrator FRANKLIN COUNTY COMMISSIONERS ____________________________________ Dean A. Horst, Chairman ____________________________________ John T. Flannery ___________________________________ Robert G. Ziobrowski *May be assisted by Copilot Franklin County Bond Refunding Update June 24, 2026 Prepared by: John Frey Director & Garrett Moore Senior Managing Consultant PFM Financial Advisors LLC 100 Market Street Harrisburg, PA 17101 717.231.6265 www.pfm.com MUNICIPAL MARKET UPDATE June 18, 2026 HISTORICAL BVAL CURVE ILLUSTRATION - SINCE JANUARY 1, 1993 \[1\] 8.00 7.00 RangeAverageCurrent 6.00 5.00 4.00 Yield (%) 3.00 2.00 1.00 0.00 1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year 10 Year11 Year12 Year13 Year14 Year15 Year16 Year17 Year18 Year19 Year20 Year21 Year22 Year23 Year24 Year25 Year26 Year27 Year28 Year29 Year30 Year Maturity Year SPOT ANALYSIS - 10 YEAR BVAL - SINCE JANUARY 1, 1993 \[1\] Since 1/1/1993 AmountDate 5.90 Min 0.543 8/10/2020 5.40 Max 6.150 11/17/1994 4.90 Average 3.239 ƓΉğ 4.40 Current 2.890 ЏΉЊБΉЋЉЋЏ 3.90 3.40 2.90 Yield (%) 2.40 Since 1/1/1993Rate% Greater% Less 1.90 Current2.89056.94%43.06% 1.40 Current + 50bps3.39046.73%53.27% 0.90 Current + 100bps3.89032.40%67.60% 0.40 1993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026 SPOT ANALYSIS - 10 YEAR BVAL - SINCE JANUARY 1, 2025 Since 1/1/2025 AmountDate 3.800 Min 2.470 2/27/2026 Max 3.800 4/9/2025 3.550 Average 2.974 ƓΉğ Current 2.890 ЏΉЊБΉЋЉЋЏ 3.300 3.050 Yield (%) 2.800 2.550 2.300 Jul-25 Jan-25Jan-26 Jun-25Jun-26 Oct-25 Feb-25Apr-25Sep-25Feb-26Apr-26 Dec-25 Aug-25 Nov-25 Mar-25Mar-26 May-25May-26 \[1\] Datapoints prior to January 4, 2010 are provided by MMD, datapoints after January 4, 2010 are provided by BVAL. 2 PFM Financial Advisors LLC | 6/22/2026 COUNTY OF FRANKLIN SUMMARY OF OUTSTANDING INDEBTEDNESS DEBT SERVICE REQUIREMENTS 12345678 LGUDA Debt*Other Financings Fiscal G.O. BondsG.O. BondsG.O. BondsG.O. Bonds Sub-Total Motorolla Total Year Series ofSeries ofSeries ofSeries of LGUDA Capital Lease Debt Ended 2018202120232024 Debt Service*2021 Service 12/31/20265,080,925241,000403,800418,600 6,144,325 493,064 6,637,389 12/31/20275,082,725259,800433,550417,600 6,193,675 493,064 6,686,739 12/31/20285,084,525508,000436,800396,600 6,425,9256,425,925 12/31/20295,086,125508,700664,800426,400 6,686,0256,686,025 12/31/20305,082,325509,100669,000425,000 6,685,4256,685,425 12/31/20315,083,125509,200667,600428,600 6,688,5256,688,525 12/31/20325,083,125504,000675,800422,000 6,684,9256,684,925 12/31/20335,082,125503,650678,200420,600 6,684,5756,684,575 12/31/20345,084,925503,000675,000424,200 6,687,1256,687,125 12/31/20355,086,125502,050671,400427,600 6,687,1756,687,175 12/31/20365,085,525500,800677,400420,800 6,684,5256,684,525 12/31/20375,082,925509,250672,600424,200 6,688,9756,688,975 12/31/20385,081,850512,100667,400427,400 6,688,7506,688,750 12/31/20392,729,5003,531,800425,400 6,686,7006,686,700 12/31/20403,406,0003,278,400 6,684,4006,684,400 12/31/20416,687,200 6,687,2006,687,200 12/31/2042 12/31/2043 12/31/2044 12/31/2045 Totals66,086,3508,800,15014,931,15015,870,600105,688,250986,128106,674,378 Principal**:51,230,0006,700,0009,950,0009,840,00077,720,000955,35378,675,353 Call Date:11/1/202611/1/202611/1/20285/1/2029 New Money & Motorolla Lease Purpose:Cur Ref Portion New MoneyNew MoneyNew Money (911) of 2011 *Debt issued under PA's Local Government Unit Debt Act (LGUDA) and filed with PA's Dept. of Community and Economic Development (DCED) ** Outstanding as of May 11, 2026 3 PFM Financial Advisors LLC 5/11/2026 County of Franklin Bond Refunding Update June 24, 2026 1. Discussion on the refunding of a portion of the CountyÓs existing bonds: a. The County has two outstanding bond issues with Call Dates of 11/1/2026. Federal tax law allows for tax-exempt refundings no earlier than 90 days prior to the Call Date. Therefore, the earliest the County could settle on a refunding would be 8/3/2026. Callable Callable Par Coupon RangeFinal Maturity SeriesCall Date $ 48,150,00011/1/20263.50% - 11/1/2038 2018 Bonds4.00% $ 6,700,00011/1/20263.00%11/1/2039 2021 Bonds b. Summary of Potential Refunding Plan: rd i. In 3 Quarter of 2026, the County executes a refunding of a portion of the 2018 Bonds that result in significant debt service savings. A refunding of the 2027-2033 maturities of the 2018 Bonds ($25,320,000), currently produces net savings of approximately $513,000 (approximately 2.03% of refunded par). ii. The other non-refunded maturities of the 2018 and 2021 Bonds would remain outstanding and PFM would continue to monitor for a future refunding to produce additional savings. c. See next page for an annual savings summary. Actual interest rates and final savings will not be determined until final bond pricing. 4 d. Current summary of the annual debt service savings: SERIES OF 2026 $25,320,000 Refunded Par 11/1/2033 Final Maturity $513,340 Total Savings Savings as % of 2.03% Refunded Par FiscalEst. Annual YearDebt Service EndingSavings \[1\] 12/31/2026 $ 65,990 12/31/2027 $ 65,800 12/31/2028 $ 65,100 12/31/2029 $ 61,700 12/31/2030 $ 65,900 12/31/2031 $ 62,450 12/31/2032 $ 61,950 12/31/2033 $ 64,450 12/31/2034 $ - 12/31/2035 $ - 12/31/2036 $ - 12/31/2037 $ - 12/31/2038 $ - TOTAL513,340$ \[1\] Estimated based on approx. current market rates. Actual rates to be determined at time of pricing. 2. Parameters Bond Ordinance for Series of 2026 Bonds: a. Per PA borrowing laws, the Ordinance establishes the maximum par amounts per maturity and maximum interest rates. b. The Ordinance authorizes the financing team to proceed if the final numbers are within the maximum limits. c. Provides the maximum amount of flexibility to be able to enter the market and price the Bonds when the bond documents and S&P credit rating are ready. d. The ultimate financing at the time of bond pricing, must still be confirmed by the County Commissioners and Chief Clerk/County Administrator. 5 County of Franklin Preliminary Financing Timeline Series of 2026 Refunding Bonds JuneJulyAugustSeptember SMTWTFSSMTWTFSSMTWTFSSMTWTFS 1234561234112345 7891011121356789101123456786789101112 1415161718192012131415161718910111213141513141516171819 21222324252627192021222324251617181920212220212223242526 2829302627282930312324252627282927282930 3031 June 24 Board Meeting o Presentation on the issuance of Series of 2026 Bonds for the purpose of refunding a portion of the CountyÓs 2018 Bonds o Proceed with preparation of financial and legal documents for the bond sale o Proceed with S&P credit rating process (current rating from S&P is ÐAAÑ) August 6 Board Meeting o Parameters Bond Ordinance: Official vote by the Commissioners to authorize the issuance of the 2026 Bonds Bond documents reflect maximum not-to-exceed amounts and interest rates August 18 ± o Bond Sale via PFM competitive internet auction Locks-in final interest rates, savings, and final bond payment schedule September 24 ± o Settlement of Series of 2026 Bonds Net bond proceeds into an escrow account to redeem the refunded bonds on the 11/1/2026 call date 6 PFM Financial Advisors LLC Disclosures: PFM is the marketing name for a group of affiliated companies providing a range of services. All services are provided through separate agreements with each company. This material is for general information purposes only and is not intended to provide or give a specific recommendation. advisory services are provided by PFM Financial Advisors LLC which is a registered municipal advisor with the Securities and Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB) under the Dodd-Frank Act of 2010. Swap advisory services are provided by PFM Swap Advisors LLC which is registered as a municipal advisor with both the MSRB and SEC, a commodity trading advisor with the Commodity Futures Trading Commission, and a member of the National Futures Association. Consulting services are provided through PFM Group Consulting LLC. PFM financial modeling platform for strategic forecasting is provided through PFM Solutions LLC. For more information regarding PFMÓs services or entities, please visit www.pfm.com. The information and any analyses contained in this presentation are taken from, or based upon, information obtained from the recipient or from publicly available sources, the completeness and accuracy of which has not been independently verified, and cannot be assured by PFM. The information and any analyses in these materials reflect prevailing conditions and PFMÓs views as of this date, all of which are subject to change. To the extent projections and financial analyses are set forth herein, they may be based on estimated financial performance prepared by or in consultation with the recipient and are intended only to suggest reasonable ranges of results. Opinions, results, and data presented are not indicative of future performance. Actual rates may vary based upon market conditions at the time of pricing. The printed presentation is incomplete without reference to the oral presentation or other written materials that supplement it. To the extent permitted by applicable law, no employee or officer of PFMÓs advisory business, nor any of PFMÓs affiliated companies, accept any liability whatsoever for any direct or consequential loss arising from negligence or from any use of this presentation or its contents. Any municipal financial product or financial strategy referenced may involve significant risks, including, but not limited to: market, interest rate, or credit risk, and may not be suitable for all clients. The ultimate decision to proceed with any transaction rest solely with the client. 7