ECFSA Finalizes Capital Borrowing, Erie County Saves $18 Million

May 18, 2010

 

Erie County Executive Chris Collins and Erie County Fiscal Stability Authority Chairman Daniel Oliverio announced today that the Authority has successfully conducted long-term capital borrowing on behalf the County, saving taxpayers $18 million.   The Authority closed on the borrowing yesterday and the money was transferred into the County’s bank account today.  The Authority borrowed approximately $173 million on behalf of Erie County to fund capital projects for 2007, 2008, 2009 and 2010.  With its stronger credit rating, the Authority is able to borrow at a lower interest rate than the County, achieving the millions in savings for taxpayers.  The savings will be generated over the next 13 years.  The Authority will also be conducting a follow up transaction, known as a refund sale, in the coming months, saving Erie County another $4-5 million. 

 

Earlier this year, the County Executive agreed to allow the Authority to conduct a long-term borrowing on behalf of the County because of the significant savings that would be generated at this time.  The long-term borrowing allows the County to move forward with its capital obligations and planned projects in a significant way.  Last year, the County allowed the Authority to conduct a short-term borrowing to secure the necessary resources in time for the spring construction season.

 

“Given the current climate on Wall Street, this is exactly the right time to engage in a long-term borrowing for the County’s capital needs, of which there are many,” said Erie County Executive Chris Collins.  “While I had been initially opposed to the Authority borrowing, I changed course after carefully reviewing data from a variety of sources and felt assured that allowing the Authority to borrow at this time would generate significant savings for local taxpayers.  These savings are too compelling to be ignored, and taxpayers should be given the opportunity to benefit from them.” 

 

“I want to thank County Executive Collins, the Erie County Legislature and my colleagues at the Stability Authority Board,” said ECFSA Chairman Daniel Oliverio.  “This is an example of good governance and what can happen when we work together.”

  

The long-term capital borrowing is critical to numerous road and bridge projects throughout Erie County, including: Wehrle Drive, Colvin Boulevard, Maple Road, Seneca Street and Pavement Road bridges, and the reconstruction of sections of Zoar Valley damaged by severe storms.  The completed borrowing will also fund renovations at Erie Community College and the County’s ongoing build-out of an updated 400 megahertz public safety communication system to better aid local first responders.  Other important projects include the rehabilitation of Ralph Wilson Stadium, the Botanical Gardens master plan reconstruction, improvements and upgrades at the Buffalo Niagara Convention Center and security improvements at the Correctional Facility and Holding Center.