OC Visits Sacramento to Demonstrate Support for Consensus Recovery Plan
COUNTY OF ORANGE
FOR IMMEDIATE RELEASE September 11, 1995
Orange County Group Visits Sacramento to Demonstrate Support for Consensus Recovery Plan Agreement
(Sacramento, CA) - A delegation of Orange County government and business leaders visited Sacramento today to demonstrate their united support for the Orange County Consensus Recovery Plan Agreement.
The plan, designed to allow the County to emerge from bankruptcy, requires passage of enabling legislation currently before the State Legislature in order for it to be implemented. The Legislature adjourns September 15.
On hand to demonstrate to legislators a unified show of support for the plan and to urge quick approval were Supervisors Gaddi Vasquez and Marian Bergeson, Orange County interim CEO Jan Mittermeier and representatives from the Orange County Transportation Authority (OCTA), Orange County League of Cities, Orange County Business Council and other special districts.
"We've worked together to develop a local solution and build consensus at every level for this plan," said Vasquez, Chairman of the Orange County Board of Supervisors. "It is a viable plan that has been endorsed by representatives of the more than 250 investment pool participants. We strongly urge our legislators to support it this week so that we can emerge from bankruptcy and restore confidence in Orange County."
"Being a former state legislator and now a local representative, I believe this Consensus Plan offers an ideal opportunity for state and local governments to work cooperatively," said Supervisor Bergeson. "However, this is a very fragile plan, and has earned the approval of the investment pool participants because of its current provisions. If the Legislature changes those provisions, the recovery of Orange County is put in jeopardy."
"We support this plan because it makes schools a top priority and will allow us to continue providing a high quality education to the students we serve." noted Fullerton School District Superintendent Ken Jones.
This morning, the OCTA unanimously approved the County of Orange Consensus Recovery Plan. Earlier the plan had won unanimous approval from the Orange County Board of Supervisors as well as the Orange County Business Council. Also approving the plan were the Investment Pool Participants Committee, representing cities, school districts and special districts; the OCTA and the Orange County League of Cities.
Key elements of the plan include:
Diverting $38 million annually from the OCTA for 15 years. In return, the county will transfer $23 million of its gas tax revenue annually to OCTA, which is earmarked for road improvement projects.
Paying investment pool participants from proceeds garnered from any successful litigation the County has filed against investment brokers and other advisors deemed responsible for the crisis.
Diverting revenue, including $15 million annually from the County's waste management program and another $12 million from County-controlled special districts, to the County's General Fund.
The combined efforts are expected to generate enough revenue and reduce claims to enable the County to repay short-term public debt of $800 million, due June 30, 1996, and pay vendors and other creditors.
Meanwhile, Moody's Investors Service last week issued a report on the Consensus Plan, stating if approved, the outlook for bondholders would be positive. "The economics of the current plan would allow the County to repay its debt and go the extra step of replenishing its reserves," the report said.