Surprise, surprise! Last year, Standard and Poor’s upgraded Laguna Beach’s municipal bonds to AAA, according to a report from city Treasurer Laura Parisi. This will help the city pay off debt it has incurred by lowering interest rates. But will it keep the city on a “green” path at a time when fiscal red light warnings are furiously blinking? That’s a good question.
Parisi’s good news came at the same time that City Manager Ken Frank announced a projected $1.2-million budgetary shortfall — which will be easily covered by the city’s $6-million reserve fund and a $2.5-million Recession Smoothing Fund that Frank insisted upon creating when the economy began to tank.
The future isn’t looking very bright, however, with retirement obligations looming on the horizon like a tornado ready to rip the roof off of City Hall. One of those retirees, of course, will be Frank himself.