County Credit Enhancement Program - Annual Program Summary
Purpose
This program reduces county borrowing costs on general obligation bonds issued for certain purposes by providing a limited state-guarantee of the bond payments, thereby allowing counties to receive higher bond ratings and lower interest rates.
Customers and Services
The county debt obligation must be a general obligation bond issued for the construction of jails, correctional facilities, law enforcement facilities, social and human services facilities, or solid waste facilities. If a county is issuing bonds for a combination of eligible and ineligible purposes, bonds for the eligible purposes must be issued as a separate series.
A county must apply to the Public Facilities Authority (PFA) for a specific bond issue and enter into an agreement to comply with the requirements of Minn. Stat. 446A.086. If a county is unable to make a payment on bonds participating in the program, the state will make the payment in its place, provided that funds are available in the state general fund. If the state does pay part or all of a bond payment, the county’s full faith and credit pledge on the bonds automatically becomes a full faith and credit pledge to repay the state, with interest.
Measures - Reporting period is state fiscal year (SFY), July 1 - June 30
SFY 2005 |
SFY 2006 |
SFY 2007 |
|
| Number of county bond issues covered | 10 |
6 |
6 |
Funding Source and Allocation
No funds are allocated. This program provides a state guarantee of the payment of principal and interest on debt obligations if certain requirements are met.
Statutory Authority
-- Minnesota Statutes, Chapter 446A.086
Contact Information
Jeff Freeman, Deputy Director, Public Facilities Authority
Phone: 651.259.7465 or toll-free: 800.657.3858; TTY: 651.296.3900
E-mail: Jeff.Freeman@state.mn.us
Website: www.deed.state.mn.us/community/assistance/pfa.htm
This information current as of January 2008. For more information on DEED programs, see the State of Minnesota budget pages.