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Berkeley,
California (Wednesday, January 2, 2008) - The
City of Berkeley will be able to borrow money at a better rate than
most other cities, due largely to the City Council’s responsible
spending policies and the safe reserve the City keeps on hand for
emergencies.
Standard
& Poor’s, which provides credit ratings and other financial
analysis, recently upgraded the City's general obligation bonds from
AA- to AA, and the Certificates of Participation from A+ to AA-.
“This is good news for residents
because it’s one objective measure of how the City is managing
taxpayer dollars,” said City Manager Phil Kamlarz. “It doesn’t
mean we have extra money to spend, but like a personal credit
rating, it says that we’re making the right choices.”
Standard and
Poor’s definition of an AA rating is: “The obligor's
capacity to meet its financial commitment on the obligation is very
strong.”
“The City’s improved bond rating is
also worth noting because most municipalities in California are
seeing their credit rating go down,” said Finance Director Bob
Hicks. “Berkeley has had to make some hard choices when it comes
to finances, and our Council has done a good job of keeping a
responsible reserve in the face of that.”
When Standard & Poor’s revises
bond ratings, it reviews the City’s financial statements, budget,
and current debt, as well as many other economic and financial
factors.
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