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Credit Agency Affirms San Juan Capistrano's 'AAA' Rating

Credit agency affirms San Juan Capistrano's AAA rating on 1998 bonds. Patch file photo
Credit agency affirms San Juan Capistrano's AAA rating on 1998 bonds. Patch file photo
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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Donna Fleming January 29, 2014 at 05:33 PM
Good News- 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. This means the city can afford to pay back the water company over biling that is due to residents of San Juan Cap for the last 3 years. Our dollars for fees attached to the water bill went into the city general fund. So, cough it up.
Peace 4 SJC January 29, 2014 at 07:41 PM
Looking for a handout Donna? There's no money left after staff time doing public records searches, responding to code complaints, paying attorney fees, and a special election. I heard the City of Bell has low water rates...something to think about.
bill odel January 29, 2014 at 08:25 PM
Obviously this agency has not been to any city council meetings to see how out of control the mob is. Sad state of this city. They should also not shop at Von's on the weekends.
Donna Fleming January 29, 2014 at 08:38 PM
It is not a handout when money is owed to you. Judge Munoz ruled for the city. The city water dept has been over charging us for 3 years in the way of fees, for a service we do not have. The city who runs the water company owes refunds to everyone in San Juan Capistrano who has paid the inflated, and illegal water bills for the last three years. And, attorney fees, are the result of Mayor Allevato and his poor leadership.
Gus Gunderson January 29, 2014 at 10:03 PM
It is helpful Peace 4 SJC when you understand that the city is reimbursed by the state for public records requests. But, I am sure you already knew that didn't you? The cost to the residents of San Juan for a public records request is zero.
Gus Gunderson January 29, 2014 at 10:05 PM
Did you expect less than a AAA rating, these bonds are not paid from city revenue. They are paid by a tax on real property owned by the residents, again, not city revenue. Here is the quote from the article "The bonds are payable from a tax based on the assessed value of real estate or personal property approved by the community in 1990."
Whiskey Bent January 29, 2014 at 11:56 PM
Penny how is this different than the Moody's ratings?
Donna Fleming January 30, 2014 at 12:44 AM
Penny..I was wondering the same thing. ?
Shripathi Kamath January 30, 2014 at 05:50 AM
Darn it! I half-expected a comment to resemble "I abhor credit ratings. But really. The Fitch Ratings, Ltd is a relic of another era trying to remain relevant. Credit rating cities? PLEASE. Our impulse to nanny-state thinking will not be contained." ___________________________________________________ Guess someone like that who'd comment is busy smelling elections.
Sunshine January 30, 2014 at 02:52 PM
Unnecessary attorney fees incurred by Allevato, Taylor and Kramer are breaking our bank. For example, our city attorneys are fighting against the First Amendment Rights of a paper these three banned and they are in court to fight and appeal their illegal water bills. The Recall is a real deal at a one time $5 a household to get rid of these lawbreakers and stop the attorney and court fees.
Donna Fleming February 13, 2014 at 02:45 AM
In November of 2012, Moody's Investors Service downgraded Detroit's bond rating Thursday deeper into junk status, citing uncertainty after the repeal of Michigan's emergency manager law and a rising risk of municipal bankruptcy or default in the next 12-24 months. Noting the narrow cash flow. I sound the bygone day....let it take you back...http://www.youtube.com/watch?v=NPBkiBbO4_4

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