Sussex County Adopts Ordinance Expected to Create $2.3 Million in Savings for County Taxpayers

(Newton, NJ) In a time when many New Jersey residents have felt crushed by the weight of
overburdening Murphy Administration taxes, Sussex County’s Board of Chosen Freeholders have
provided relief to county taxpayers through Refunding Bonds, expected to garner more than $2.3
million in tax savings.

The measure for the Refunding Bonds was unanimously adopted at the Wednesday Freeholder meeting,
to replace inherited debt in Lease Revenue Bonds as part of the “Guaranteed Renewable
Energy Program,” approved by the 2011 Freeholder Board, none of the present freeholders having
served on that board.

Those $26,715,000 in Lease Revenue Bonds backed a solar energy program that went belly-up after the
company folded, leaving Sussex County residents holding the bag.
According to the ordinance, $11,070,000 remains outstanding from the 2011 bonds, which will be
refunded and refinanced, “to achieve debt service savings and tax relief.”

After Freeholder Director Sylvia Petillo read the ordinance into the record, Bond
Attorney John Cantalupo provided background about the initial bonds; and expected savings through
the Refunding Bonds.

“This was the original solar program, that I know you are all aware of, is those bonds were
originally financed,” Cantalupo said. “And as you know, we are in an historically-low interest rate
environment.”

He compared the bond refinancing process as a way to lower payments, much like a home mortgage,
further recapping the Freeholders approved a resolution on Oct. 15, directing the Morris County
Improvement Authority, the issuer of the bonds – with Sussex County not having its own Improvement
Authority – to activate the process. Once underway, it triggered the working groups within the
Improvement Authority and county, to start reviewing the underlying documents and
refinancing process.

Cantalupo said when analyzed, it was discovered the 2011 ordinance never included a refinancing
mechanism. In order to create that component within the original ordinance, Cantalupo
said the 2011 document required amending, “to allow the bonds to be refinanced.” “You’re not
increasing your debt, you’re going to be lowering your debt,” Cantalupo
reiterated.

He explained more about this savings opportunity for Sussex County residents, saying that to
refinance debt in New Jersey, a 3% debt services savings must already exist.
“In this instance, what’s currently on the table based on market from the Monday before when it was
looked at [Nov. 30], the savings are over 10%,” Cantalupo said, because the county has already paid
a shortfall.

He said that equates to $1.15 million saved, which, “goes directly to the county and the taxpayers,
under that program.”

However, he said taxpayers will actually save $2,309,000, calling it a “fairly significant
opportunity” for Freeholders to approve taxpayer relief and debt services.

Freeholder Deputy Director Dawn Fantasia thanked Cantalupo for his presentation and for the
consistent communications with his office on the topic, stating, “As you know, the current
Freeholder Board came in and inherited some of these decisions, and some of this debt, and all of
our residents have had to carry this burden.”

“The fact that we are able to save over $2 million, by amending this, is definitely
excellent news for us as a board and us as a county,” Fantasia added.

In other business:

Each of the Freeholders offered their condolences for those who knew Hamburg Police Patrolman Jason
Franco, who died accidently on Tuesday while deer hunting. At the start of the meeting, Petillo led
the group in a moment of silence in his memory.

“Patrolman Franco was sworn into the Hamburg Police Department on April 16, 2018,” Petillo stated
before their moment of silence. “He also served as a volunteer firefighter in Montague. The passing
of Patrolman Jason Franco is a terrible tragedy for his family and our entire county. Tonight, our
thoughts and our prayers are with his family.”

“I want to echo the statements made at the beginning of the meeting and offer my prayers and
deepest sympathy to the family of Patrolman Jason Franco,” said Freeholder Anthony Fasano. “That is
just an incredibly sad situation and my heart goes out to his family and to his friends, during
this difficult time.”

Freeholder Joshua Hertzberg offered similar sentiments about Franco, saying, “When I first heard
what had happened yesterday evening, I couldn’t help but feel that sense of just a terrible feeling
what his family must be going through right now. I just want to extend my thoughts and prayers to
them and his colleagues. I know he’ll be greatly missed – I’ve heard nothing but good things about
him.”

“My heart goes out to Jason Franco’s family,” said Freeholder Herbert Yardley. “It’s a tragedy and
there’s not much you can say other than God bless him and his family; and my heart goes out to
them.”

“In speaking to the tragic loss of Jason Franco, not only was he a police officer, but he was a
firefighter,” Fantasia said. “He’s a true gentleman that exemplified public service here in the
county and he was loved by so many. Our prayers go to him and his family.”

Fantasia recapped figures in the county’s battle against COVID-19, reporting from Dec. 9, 66,415 of
the 140,000 residents “have received and reported a test for COVID-19.” Fantasia broke that down,
explaining over 47% of the county’s residents have been tested, with only 3,618 or 5.45% positive.

Of those cases, 2,481 or 68.6% “recovered.” She defined “recovered” as one “not currently
hospitalized with COVID, nor have they passed from COVID.” She clarified the recovery rate is
in process, due to the number of cases still under investigation; and is anticipated to be much
higher. There were 937 or close to 26% still under investigation, she added. With the 200 or 5.5%
death rate overall – one in October and two in November – the majority occurred at nursing
homes, with 115 of the 200 county’s total, or 57.5%. Hospitalizations, updated each Friday
on the county’s website, tallied 14 in October, 19 in November and seven to date in December – with
all of December’s at Newton Medical Center.

During COVID’s first wave, Fantasia explained, it mainly impacted older adults and those with
underlying health conditions, as well as long term care facilities ill-prepared for the pandemic,
while mandated by the Murphy Administration to admit and readmit COVID positive to those
facilities. The second wave, she said, is considered “community-wide,” with 70% sourced to young
and asymptomatic individuals, typically contracting it at congregate activities- based events; and
passing it to household members between the ages of 19 and 49. The state is presently not
recommending non-essential travel out-of-state, she added, with those visiting from neighboring
states asked to quarantine for 14 days.

Fasano reminded they can request free tests from the county’s website through LabCorp
at: www.sussex.nj.us. Fantasia said residents ordering kits should not enter credit card information, but insurance information; and those whose insurance does not cover it, should
check off they do not have insurance, to receive it at no cost.

The county has been working with New Jersey’s Department of Health to develop a COVID-19 vaccine
program, Fasano said, and will provide information in the near future about the public health
clinics, similar to county flu clinics, for “fair access for all who live, work or are educated in
Sussex County.” He called it a “big step in defeating this virus and getting back to normal,” with
more information forthcoming on the county’s website.

Yardley reminded county veterans in need of food, clothing, household items or
toiletries, as well as help with temporary housing and heating bills, can find assistance in
Franklin at the veterans’ center, through Catholic Charities; and via the county’s
Senior Services.

Petillo thanked the Mohawk House for meal donations to Hopatcong seniors, with the
establishment making a similar offer for Franklin seniors, Fantasia said.

Hertzberg, who will be leaving the Freeholder Board for the Sparta Township Council in January,
complimented the efforts of county employees including Administrator Greg Poff and CFO Elke
Yetter, for their debt reduction efforts, as well as Tom Drabic, for public

transportation planning programs. He called it an “unbelievable honor,” to have served the county
and to have worked with the other Freeholders, during his tenure.

For the full meeting audio, visit: www.youtube.com/watch?v=MrEzzrlAiaY.
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