L.A. County issued general obligation bonds.
Security Pacific Merchant Bank, a unit of Security Pacific National Bank, acting as lead manager, announced the $96-million issue. Proceeds from the bond sale will be used for construction of adult and juvenile detention facilities in the county. This is the first issue of general obligation bonds by Los Angeles County in 21 years, the last being a $23.28-million bond in 1966 for health-care facilities. Since 1978, when Proposition 13 was passed, California jurisdictions have been prevented from issuing general obligation bonds because of a 1% ceiling on property tax. But Proposition 46, passed in 1986, allows jurisdictions to exceed that limit for specifically approved projects.
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