News

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.

Comments

 +   Like this comment
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.


 +   Like this comment
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.


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

Truth,
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.


 +   Like this comment
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.


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

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

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


 +   Like this comment
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!


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

Thanks for the value add, Joanne.


 +   Like this comment
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]


Don't miss out on the discussion!
Sign up to be notified of new comments on this topic.

Email:


Post a comment

Posting an item on Town Square is simple and requires no registration. Just complete this form and hit "submit" and your topic will appear online. Please be respectful and truthful in your postings so Town Square will continue to be a thoughtful gathering place for sharing community information and opinion. All postings are subject to our TERMS OF USE, and may be deleted if deemed inappropriate by our staff.

We prefer that you use your real name, but you may use any "member" name you wish.

Name: *

Select your neighborhood or school community: * Not sure?

Comment: *

Verification code: *
Enter the verification code exactly as shown, using capital and lowercase letters, in the multi-colored box.

*Required Fields

Sneak peek: Bradley's Fine Diner in Menlo Park
By Elena Kadvany | 3 comments | 3,297 views

Marriage Underachievers
By Chandrama Anderson | 0 comments | 1,622 views

A Surprise!
By Cheryl Bac | 0 comments | 1,519 views

Best High Dives to Watch the Game
By Laura Stec | 4 comments | 1,140 views

Measure M-- I am not drinking Greenheartís expensive potion
By Martin Lamarque | 32 comments | 966 views