BUENA PARK : City to Pool Cost of Issuing Bonds

The City Council has approved joining other cities and counties in California to pool the cost of issuing bonds.

“The purpose is to spread the costs over a larger base as opposed to each individual city issuing bonds themselves,” said Greg Beaubien, finance director. “The benefit for the city is that because the cost of issuing bonds is spread over a larger base, it reduces the cost by pooling all of us together.”

At Monday’s meeting, the council also authorized the city to issue about $3 million in bonds to cover cash-flow shortages the city anticipates during the 1993-94 fiscal year.

Beaubien said that some of the city’s revenues, such as property taxes and franchise fees for utility services, come in large sums toward the end of the year. On the other hand, city expenditures, which include paying employee salaries and benefits, are spread equally over the fiscal year.

“We spend more than we take in from a revenue standpoint at certain times of the year,” he said. “This allows us to borrow money and leave reserves invested.”