Erie County legislators voted Monday to borrow almost $52 million under an agreement that will break the hold of the Fiscal Stability Authority if the county’s financial recovery continues.
With two legislators absent from the special session, the vote was 12-1 in favor of the agreement. The money will pay for a number of projects approved earlier this year, including road repairs and work at Erie Community College.
“It’s about time these things get moving,” said Chairwoman Lynn M. Marinelli, D-Town of Tonawanda.
The sole opposing vote was cast by Legislator Barry A. Weinstein, R-Amherst, who attended his last meeting before leaving the Legislature for a seat on the Amherst Town Board.
“I didn’t think it was a good idea,” he said afterward. “I thought the control board should sell the bonds. I thought that was the cheaper way for the county to do it.”
And though he voted “yes,” Legislator Thomas J. Mazur, D-Cheektowaga, didn’t share the enthusiasm of some colleagues on the agreement.
“I am not sure if this really was a great compromise,” Mazur said. Instead, he used the terms “saving face” and “appeasement.”
However, “It’s time to move forward,” Mazur said. “I don’t want to be labeled . . . an obstructionist.”
“This is about progress in this community,” said Legislator Timothy M. Kennedy, D-Buffalo. “This is about moving forward.”
What legislators agreed to is the use of “mirror bonds,” in which the county and state-appointed control board each sells a set of bonds.
The control board sells its bonds via Wall Street and the county sells its bonds to the control board. Under the compromise, when the county receives two “A” ratings from nationally recognized ratings agencies, the control board’s bonds will be extinguished and bondholders will receive the county’s bonds in exchange.
“This mechanism ensures that the authority cannot perpetuate its existence if the county continues its ongoing financial recovery,” said County Comptroller Mark C. Poloncarz.
jhabuda@buffnews.com
Copyright 2007 - The Buffalo News
