After 9 Months, County Adopts Budget

Nine months after talks began, the county finally adopted its 1997-98 budget, a $3.82-billion spending plan that includes $347 million in discretionary spending.

Adoption of the budget was almost a formality, since most of the debate over various spending proposals occurred during three days of public hearings last month.

But it came after Supervisor Tom Wilson prevailed on his colleagues to separate the main budget from a $20-million allocation for planning the reuse of El Toro Marine Corps Air Station as a commercial airport along with John Wayne Airport.

The vote was unanimous for the main budget. Wilson and Supervisor Todd Spitzer, both staunch opponents of an El Toro airport, voted against the base reuse funding, which passed with other supervisors’ support.

Supervisors still haven’t decided how to spend about $11 million in money set aside for “critical projects”--including $5 million from a settlement paid by investment giant Merrill Lynch to end a criminal probe by the district attorney’s office into its role in the county’s 1994 bankruptcy.

County Executive Officer Janice Mittermeier said she expects to send a report to supervisors next month on their options for allocating the money.

Supervisor Jim Silva continued his crusade to put all extra money into early repayment of the debt the county incurred in 1995-96 to end the bankruptcy. Some $24 million will be set aside this year, bringing the total debt-repayment fund to $50.8 million. Supervisors set a goal of dedicating $140 million over the next five years to early retirement of the county’s debts.

Mittermeier said the county probably will begin dipping into the debt-repayment funds this year, looking to pay off bonds with the highest interest rates, those affecting the general fund and bonds “with strings attached.”

She said the county might decide to pay off bonds that were secured by mortgaging properties the county could be interested in selling, such as the South County court complex. Supervisors last month set aside $5 million to begin planning for construction of a new South County courthouse.

Supervisor Spitzer said everything should be done to assure investors of the county’s credit-worthiness, so the county can resume limited borrowing for its short-term cash needs.