Collins and Control Board Reach New Borrowing Agreement

April 22, 2009

Agreement will get stalled projects moving, meets needs of both county & board

Erie County Executive Chris Collins and the Erie County Fiscal Stability Authority (ECFSA) have reached an agreement on how to borrow funding necessary to complete dozens of long stalled capital projects. The County needs to borrow approximately $100 million to complete the already approved capital projects for 2007 and 2008, and the pending capital projects for 2009.

Under the terms of this new agreement, Erie County will allow the ECFSA to borrow a Bond Anticipation Note (BAN) for a period of 12-months. Erie County will then be able to refinance a long term bond if the ECFSA moves to advisory status or if pending legislation removing the borrowing powers of the ECFSA passes the State Legislature. If one of those triggers is not met within the 12-month window, the ECFSA will refinance for another short-term, 12-month borrowing.

Collins and the ECFSA reached this agreement as the construction season begins in Western New York, allowing work to start on dozens of long stalled and badly needed county road, building and infrastructure projects. This work will help support many local contractors and hundreds of local construction workers.

"Our new agreement with the Control Board is the result of good communication and a collaborative process," said Erie County Executive Chris Collins. "Erie County is recognizing the Control Board's ability to conduct financing at a favorable interest rate to local taxpayers. In return, the Control Board is recognizing the County's improving financial condition and our need for financial independence. Taxpayers have waited long enough for this much needed capital work. These important projects represent both a significant upgrade in county infrastructure and a significant boost to our local economy."

"We are pleased that we have reached an agreement through very constructive negotiations that will result in funding for many important projects in our community on favorable terms" said Robert M. Glaser, Chair of the Erie County Fiscal Stability Authority. "Bonding through the Control Board will contribute to the improving financial condition of Erie County, along with the encouraging reform initiatives undertaken by the Collins' administration. The cooperative nature of the dialogue that has led to this agreement gives us a heightened level of confidence that sound fiscal management by the administration will result in continued improvement in the County's finances and its bond rating, despite increasing outside pressures."

This matter will now go before the Erie County Legislature for approval.