FOR IMMEDIATE RELEASE December 17, 1998 Contact: Diane Thomas (714) 834-6203
Board Allocates Funds To Pay Off Recovery Bonds
SANTA ANA – Committing to expenditures for debt reduction, juvenile facilities and housing for neglected children, the Orange County Board of Supervisors this week adopted its first annual revision of a long-range financial plan.
The Board unanimously adopted the Strategic Financial Plan that pledges $115 million over the next five years to address a list of prioritized needs and an additional $230 million in expected litigation proceeds to pay off debt.
"We anticipate approximately $260 million in income to the County from bankruptcy-related lawsuits that have been settled," said County Finance Officer Gary Burton. "We plan to take $230 million of that which, when combined with debt service reserves of approximately $27 million, will pay off the 1995 Recovery Bonds." This commitment will remove $247 million in principal from the County’s balance sheet.
"I have been committed for a very long time to paying off our debt as soon as possible," said Board Chairman James W. Silva. "It’s important for our long-term financial health and it’s important in restoring Wall Street’s confidence in our ability to make prudent economic decisions."
Supervisors adopted the following spending plan:
South Court space needs
Deferred maintenance/Americans with Disabilities Act compliance
Juvenile boot camp – 60 beds
Los Pinos – renovation – 32 beds
Juvenile Hall expansion – 60 beds
Shelter Care Master Plan Phase II MCAS Tustin – 60 beds
Shelter Care Master Plan Phase III MCAS El Toro – 135 beds
Youth & Family Resource Center MCAS Tustin
The Strategic Financial Plan is a five-year blueprint that gives the Board of Supervisors the best information available about what resources they will have to meet their long-term priorities. The plan gives the Board a picture, based on projected revenues and obligations, of the discretionary monies that will be available over the next five years and the resources needed to fund major projects identified by the Board as policy priorities.
The County’s first long-range plan, which appears to be the only such plan in California’s county governments, was adopted in May 1998. It is a computerized financial planning tool that utilizes updated economic forecasts from Chapman University. Each year the Board will review its priorities, assess the forecast information and adopt a revised spending plan.