From a San Juan Capistrano press release:
City officials learned today that San Juan Capistrano's AAA bond rating on the City's 1998 general obligation bonds has been affirmed, with a stable outlook.
The impressive rating comes from Fitch Ratings, Ltd., an international credit rating agency founded in 1913. Fitch's long-term credit ratings are set up along a scale from AAA to D.
The $2.2 million in bonds pertain to the City's 1990 Open Space Bond measure (Measure D). The bonds are payable from a tax based on the assessed value of real estate or personal property approved by the community in 1990.
The City Council's sound budget practices and proactive fiscal management led to the affirmed AAA rating, which is also based on strategic budget modifications and a new management team focused on strengthening financial management, efficiency initiatives, and economic/business development. The City's general fund contingency reserve has grown from 23.1% to 38.1% during the Fiscal Year 2011-2013 period and its cash and investments balance is $10.2 million compared to $1.4 million at the end of Fiscal Year 2011. Sales and use tax receipts have increased by 9.1% for the first two quarters of this fiscal year.
The City has also been diligent in reducing expenditures through departmental consolidations and other means resulting in service delivery efficiencies while ensuring that City services remain.
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