Under a securitization plan, Monroe County's future Tobacco Settlement Revenues were sold to the Monroe Tobacco Asset Securitization Corporation (MTASC). MTASC, in turn, has issued bonds, which are secured by the Tobacco Settlement Revenues. Through this sale, Monroe County has avoided dependence on risky, yearly tobacco settlement payments.

However, federal tax laws and regulations require that the proceeds of the securitization be applied to projects which have long reasonable expected economic lives; that they not be used to finance general operating expenses; and that the funds be committed and expended within a relatively short period of time. If these conditions are not met and followed, the Internal Revenue Service could withdraw the tax-exempt status of the bonds and impose other penalties.

From these securitization proceeds, approximately $83 million will be used for the paying off of existing bonds or other debts of the county.

In addition, $2 million will be used to finance an open space program and the balance of revenues and interest earnings - approximately $61.6 million - will be used to finance various capital projects.

To meet federal and other requirements, projects, which will be partially financed with a portion of the $61.6 million, are as follows:

•The Jail expansion project - Tobacco Settlement Revenue sale proceeds of $39 million will be used for this project.

•Monroe Community College Master Plan Improvements including the Public Safety Training Facility - Tobacco Settlement Revenue sale proceeds of $2 million will be used for this project.

•Airport/Transportation Operation Center - Tobacco Settlement Revenue sale proceeds of $1.6 million will be used for this project.

•The Juvenile Justice Center - Tobacco Settlement Revenue sale proceeds of $15 million are expected to be used for this project.

•Tournament Soccer Complex - Interest earned on the Tobacco Settlement Revenue sale proceeds of $4 million are expected to be used for this project.