Orange County Group
Visits Sacramento to Demonstrate Support for Consensus
Recovery Plan Agreement
SACRAMENTO, Calif.
(Monday, Sept. 11) -- 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.
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