Anderson on debt
The county issued pension obligation bonds at a lower interest rate than would have been paid to the retirement system for required funding levels. In the long term, this type of financing will reduce the costs to the taxpayers for the pension system.
The juvenile justice campus was a badly needed facility to replace the “Hall of Shame” that was being threatened by the state for closure. The County received a large state grant and used tobacco securitization funds to build the majority of the facility. Only about 20% of the first phase was financed, which is very conservative. The court facility includes a unique financing plan whereby the state will pay their share of the costs.
Overall, the county’s debt is estimated to be at less then 30% of its debt capacity. In addition to the Pension Obligation Bonds issued to replace the shortfall in the pension system, the only debt that has been issued is for capital projects. The county has never borrowed for ongoing operations. The county has an excellent credit rating due to the careful management of its resources.