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County officials OK debt totals
With some of the $21.49M, jail-related debt will be retired in the next two years.
YOUNGSTOWN — Mahoning County commissioners unanimously approved $21,493,000 worth of borrowing in 22 resolutions covering a wide range of projects.
Of the total approved Monday, $12,280,000 was to retire old debt, and $9,213,000 was newly acquired debt.
The $21,493,000 represents slightly less than half of the county’s total debt of about $45 million.
The borrowing comes at a time of uncertainty regarding the county’s sales and gasoline tax revenues during the current national economic slump.
The Ohio Department of Taxation’s estimate of the county’s sales tax revenue shows a minimal decline in November, but that was preceded by a 1 percent cumulative growth in the first 10 months of this year, said County Administrator George J. Tablack.
“We’re trying to be sensitive to the effect of the economy on our revenues,” Tablack said.
The county has two 0.5 percent sales taxes, each generating about $14 million annually for its general fund, from which about $60 million is being spent this year. The general fund is the county’s main operating fund.
As it takes on its new debt, the county will soon say goodbye to some of its significant items of old debt.
The county will finish paying for construction of its jail next year, thereby terminating $4 million in annual debt payments. The county borrowed $24 million toward the $42 million jail, which opened in 1996.
The $7.3 million the county borrowed in 2005 to keep deputies working in that jail while county sales tax revenue was in limbo will be paid in full in 2010.
“Those are two big helpful things ... Paying those off will reduce the annual debt service significantly,” said Thomas R. Trotter, the county’s bond counsel.
One of the items the commissioners authorized is borrowing $2.5 million in anticipation of future sales tax revenues to pay off bonds maturing this year and the interest on them.
“I just wonder where we’re going to get all this money,” to pay off this continuing debt, said John Paulette, of Austintown, who told the commissioners they’re facing an “enormous” amount of debt.
After the commissioners voted, county Auditor Michael V. Sciortino called for the county to adopt a general fund stabilization plan and a county debt policy.
In formulating such strategic plans, he said county officials need to evaluate the county’s revenues and expenditures, decide how much revenue should be set aside annually, and determine how much debt should be incurred and paid off annually, and make short-term and long-term financial forecasts.
“We need to be tightening our belts and preparing for some pretty tough economic times,” Sciortino said.
Here are some of the major items for which the county commissioners approved the issuance of bonds or notes:
U$3,075,000 for acquiring new information technology equipment and software.
U$3.9 million to retire certain outstanding bond anticipation notes of the county.
U$600,000 for construction of a juvenile court addition.
U$3 million to rehabilitate the exterior of the century-old county courthouse.
U$2,250,000 to retire outstanding bond anticipation notes the county issued to renovate and improve the interior of the county courthouse.
U$2,785,000 to retire debt for construction of the new Petersburg sewer system.