No county bond sales expected in 2009

Earlier this year, Pima County leaders and shakers were proposing a general bond election in November, with funding requests totaling $3.2 billion.

Now Pima County administrator Chuck Huckelberry says there won’t be a bond issue on the November, 2009, ballot even with the county’s bond funded needs reduced to $750 million.

His words came in a Nov. 14 memo to the Pima County Bond Advisory Committee.

“I would not recommend that the Bond Advisory Committee place a General Obligation Bond question on the November, 2009, ballot,” he wrote.

This is fallout from the world-wide economic earthquake that has led to financial failure of businesses, millions of laid-off workers and hundreds of thousands of mortgage foreclosures.

And it follows a 14- to 15-year economic expansion cycle, Huckelberry observed.

As an indication of how the markets are roiling, Huckelberry said in January 2008, a $100 million general obligation bonds were sold by the county. “At that time only two bidders responded to the invitation bid. They were Merrill Lynch and Lehman Brothers, both of whom are no longer in business.”

Huckelberry said also that the county had been looking toward November, 2009, bond sales to make improvements in wastewater treatment plants. But he added that if the Arizona Department of Environmental Quality relaxes some compliance deadline they would also be postponed.

If financial conditions do improve and there’s a movement toward some bond sales soon, he said, “There are at least two important projects to emphasize, those being Canoa Ranch and Historic Fort Lowell Park.”

The Pima County Bond Advisory Committee met 12 times to talk about bonds on the November 2008 ballot. There were four subcommittees that met a total 50 times and there 11 public open houses.

“In total over 12,500 comments have been received,” said Huckelberry.

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