Board Boosts Allocation for Repaying Bonds Early

Saying that repayment of debts must be a top priority, the County Board of Supervisors on Wednesday made a higher-than-expected allocation to a fund for early repayment of bankruptcy recovery bonds.

County Chief Executive Officer Jan Mittermeier proposed setting aside $14.8 million for bond defeasance. But the board decided to add another $12 million to the fund, bringing the total to $26.8 million.

The money will be used for early repayment of the $800 million in bonds that the county issued in June. The county used proceeds from the sale to pay back creditors and officially emerge from bankruptcy.

Supervisors said early repayment would save millions of dollars in interest payments over 30 years. “I think this shows the taxpayers that we are serious about getting rid of this debt,” Supervisor Don Saltarelli said.

The board’s action came during the second of three public hearings on the county’s proposed $3.6-billion budget.

During the hearings, supervisors increased funding to a variety of child-welfare programs, health services and social programs. The budget augmentation will cost the county about $7 million, but state and federal funds will pick up the greater share of the overall costs.

The augmentations boosted the total number of county positions by 370, to a total of 15,818. But more than 160 of the new posts are “limited term” jobs that will last through next summer.

The board restored more than $200,000 in funding that had been cut after the bankruptcy from programs to prevent child abuse. Supervisors also gave tentative approval to a $3 increase in birth certificate fees that will provide revenue for children’s services.

“These actions demonstrate that the Board of Supervisors has not turned its back on its most vulnerable citizens,” Supervisor William G. Steiner said.

About $500,000 was allocated to drug prevention and rehabilitation programs that have suffered significant cuts in state and federal funding. One program for mothers with substance-abuse problems will receive $250,000, but the allocation will cover only a portion of the funding shortfall.

The board also directed Mittermeier to work with a private developer on a plan to build a new courthouse in South County, though no funding has been identified for the project. Mittermeier will return to the board with the plan in November.