MALIBU—The City of Malibu has earned the highest possible credit rating from the bond-rating agency Standard & Poor’s (S&P) for the refinancing of bonds that were utilized to purchase Legacy Park and improve City Hall, saving tax payers millions of dollars.
“Malibu has scored the highest credit rating a city can get, underscoring the economic health of our community and the City’s commitment to fiscal responsibility and sound management,” said Mayor Pro Tem Rosenthal when she announced the rating at the April 13 City Council meeting. “These high bond ratings will allow us to re-finance our City Hall and Legacy Park bonds and save taxpayers millions of dollars over time.”
The rating allows the Legacy Park and City Hall Certifications can be refinanced to obtain low interest rates, which will save taxpayers around $139,000 a year, and will save $3.3 million in over 24 years.
According to a news release from the City of Malibu website, the city met with S&P on March 25 to present its credit presentation, and they earned a AA+ credit rating “with an implied AAA general obligation bond credit rating.”
That is the highest possible rating for the lease financing the City is undertaking. S&P listed multiple factors in its report explaining the high rating earned by the City including a very strong economy, close proximity to Los Angeles’ large and diverse economy, per capita income that is greater than the nationwide average, strong management with high reasonable financial policies and reduced operational risk, strong budgetary performance, maintaining an operating surplus in the general fund and a minimum 50 percent General Fund reserve, very strong budgetary flexibility, and an available fund balance in fiscal 2014 of 76 percent of operating expenditures, very strong liquidity, and a strong debt and contingent liability position.
“We believe Malibu‘s desirability as both a permanent residence and a tourist destination will continue to provide credit stability,” S&P Credit Analyst Bryan Moore wrote.
