City Credit Concerns County

It is no secret that local leaders have invested in expensive and long-term development deals in downtown Orlando to keep our sputtering local economy from fizzling out. Orlando Mayor Dyer has banked his legacy on a skyline façade and his Venues projects despite the growing price tags and long-term bond commitments.

That’s why the majority of the spending projects currently underway are being funded by the City of Orlando through municipal bonds in addition to relying on the county’s tourist development taxes. But in a candid answer, Orange County’s mayor admitted her concerns remain with the city when asked directly if she was worried about the county’s credit rating or financial status due to the dealings with the city of Orlando.

“I’m not concerned about the county, I’m concerned about the city,” said Mayor Teresa Jacobs. She was confident that Orange County has set up a structure that protected the county as an entity for these kinds of financial dealings. “If the city of Orlando was willing to take risks that we weren’t, to be clear about where those risks lie and any impact to credit ratings would go to the city.”

“While that line is pretty clear, it doesn’t necessarily change the pressure that will be on us if the city fails at one of their venues,” Mayor Jacobs added. “There’s the reality.”

Mayor Jacobs has led the way for more transparency and accountability from the city of Orlando in their financial dealings, even clashing directly with Orlando Mayor Buddy Dyer in the past. Mayor Jacobs said she understands the importance of these projects to the local economy, and that is one reason she recently agreed to the Citrus Bowl renovations after the city provided more assurances.

“It’s not my nature to assume someone is going to bail me out if things don’t work out,” said Mayor Jacobs. “I think that for whatever reason that’s just historically been the culture and relationship between the city and the county.”

There are many reasons for concern about the city’s financial standing and credit ratings. The new Amway Center went over budget, costing taxpayers more than half a billion dollars; the new Performing Arts Center has seen shaky fundraising and “phase 2” is not likely going to happen anytime soon; and Dyer recently had to secure county financial support to move forward with the expected $500 million Citrus Bowl renovations because the city’s credit was “maxed out.”  The city of Orlando was also forced to dip into its reserves to plug budget holes this year. There are also new reports that the SEC will increase scrutiny of municipal securities.

“On one hand I think why don’t I mind my own business if the city wants to do that, but I have a feeling it’s still going to become our business,” said Mayor Jacobs. “There’s a protection built in but at the same time I am not naive enough to believe that if the Performing Arts Center can’t operate that the pressure will be back on Orange County to ride in to rescue, which is why I am much more cautious.”