The following is from the Laguna Beach City Council meeting of May 4. Present: Councilwoman Verna Rollinger, Mayor Pro Tem Toni Iseman, Mayor Elizabeth Pearson. Absent: Council members Kelly Boyd and Jane Egly.
City bonds upgradedCity Treasurer Parisi announced that the Moody's and Fitch recalibration of the municipal bond ratings in April was good news for Laguna. Last year, Standard and Poor's upgraded Laguna bonds to AAA.
Changes made by the rating agencies include a state of California upgrade that has contributed to a 26 basis point reduction in the interest rate paid on the state's general obligation bonds according to the Bond Buyer. Lower interest expense will assist the state in meeting its obligations without tapping into local funds, Parisi said.
Parisi thanked the City Council for assistance with the 2008 campaign requesting that the rating agencies evaluate the debt of municipal entities on the same basis as debt issued by industry, which has resulted in better ratings for municipal debt, she said.