City bonds still AAA

In a challenging year for many municipal bonds, Menlo Park has managed to keep its high credit ratings.

Finance Director Carol Augustine attributes that to the city's sizable general fund reserve, its conservative investment strategy, and its history of sound financial management.

The $10 million in bonds the city plans to sell for improvements to parks and recreation facilities will carry a AAA rating from Fitch Ratings Inc. -- the highest rating possible -- and a AA1 rating from Moody's Investors Service. In years past, Moody gave the city a AAA credit rating, but downgraded it primarily in view of California's financial crisis, Ms. Augustine said.


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Posted by Martin Engel
a resident of Menlo Park: Park Forest
on Jun 21, 2009 at 9:10 am

Is that because of the city's cash reserve as collateral; the cash reserve that we are so eager to downsize?

Has no one yet learned to reign in the obsession with spending? Whatever happened to cutting back? Where are the voices of those who lived through the Great Depression and learned its harsh lessons?

OK, big spenders, let's become Menlo Park, the frugal city that can survive what promises to be a very long economic winter.

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Posted by truth
a resident of Menlo Park: Belle Haven
on Jun 21, 2009 at 11:33 am

With all due respect to your knowledge of trains and the like, your apparent understanding of budgets and finance is sub par.

If you would just once write what has happened and not what you think will happen, at least you could not be accused of being inaccurate. The only thing we have in common with the GD is the financial market corruption.

Seriously, they are using one of the great Silicon Valley innovations in Iran to inform the world. Apple just released the latest and greatest of its phones to lines in the Apple Store...for a $300 phone...when most people have a $300 phone that is only a year old...

This is not your granfather's depression. Don't put that on Menlo Park.

Celebrate a AAA rating for crying out loud.

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Posted by Hank Lawrence
a resident of Menlo Park: Sharon Heights
on Jun 22, 2009 at 7:09 am

With all due respect, when bond ratings are assigned, the raters do not care about i-phones. The top criterium is reserves. Martin Engel is 100% spot on.

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Posted by truth
a resident of Menlo Park: Belle Haven
on Jun 22, 2009 at 12:50 pm

And so you are saying what? That the research is wrong? That the analysis of other cities is off? That you, on your couch, know more?

Don't mangle my point in yet another attempt to mislead people.

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Posted by A Potential Stooge-in-Training
a resident of Menlo Park: other
on Jun 22, 2009 at 4:21 pm

"Don't mangle my point in yet another attempt to mislead people."

Say, without that God-given ability, Hank would be nothing!

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Posted by Joanna
a resident of Menlo Park: Downtown
on Jun 22, 2009 at 6:17 pm

Don't let falsie hijack yet another thread!

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Posted by truth
a resident of Menlo Park: Belle Haven
on Jun 22, 2009 at 9:37 pm

Thanks for the value add, Joanne.

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Posted by Melvin Belli
a resident of Atherton: West of Alameda
on Jun 23, 2009 at 6:57 am

[Post removed; see terms of use]

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