Politics & Government
Standard and Poor’s Ugrades Alameda to AA+ Rating
Officials say the improved rating should save the city money when it obtains financing for Alameda Point infrastruture.
From a City of Alameda press release:
The financial rating agency of Standard and Poor’s (S&P) has upgraded the City of Alameda’s General Obligation bond rating from AA to AA+, citing Alameda’s strong financial management and an improving Bay Area economy, according to a City of Alameda press release sent out today (Tuesday, Sept. 24).
“This is an objective reality check on City Hall’s recent fiscal performance,” said Mayor Marie Gilmore. “It shows that the steps we have taken together with our employees, having them assume more responsibility for their benefits, are making a difference and are recognized by the financial markets.”
City Treasurer Kevin Kennedy stated that, “Given the recent history of the municipal bond market and the difficulties of Detroit, Vallejo and Stockton, it’s noteworthy that the rating agencies rewarded Alameda for its fiscally sound policies. I attribute this to the City’s strong reserves.”
Fred Marsh, the City’s Finance Director added, “This strong rating should result in the City realizing significant savings in the future, as it looks to obtain financing for needed infrastructure at Alameda Point.”
The Alameda City Council recently approved the refinancing of the City’s 2003 General Obligation bonds, used to fund the design and construction of the Main Library and improvements to the two branch libraries. This refinancing will save taxpayers close to a half-million dollars as a result of the AA+ upgrade and today’s low interest rates.
The City Council also authorized the refinancing of the 2003 Certificate of Participation (COP) bonds, used for seismic upgrades to City Hall. The COP refinancing will include withdrawing approximately $3 million to finance the design and construction of the new Emergency Operations Center on Grand Street, in the center of town. Those COP bonds were upgraded from AA- to AA by S&P.
For more information, please contact Assistant City Manager Elizabeth Warmerdam at (510) 747-4709.
'Like' Alameda Patch on Facebook / Follow us on Twitter @AlamedaPatch / Share your thoughts in the comments section below
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.
