SEAL BEACH : Bonds Still Rate Despite Bankruptcy
The city’s bond ratings have remained intact despite the county bankruptcy, according to city officials who point out that this small community was the first Orange County city taken off a “credit watch” list by bond-rating experts.
City Manager Jerry L. Bankston said the city’s tax revenue anticipation notes continue to earn the top “Mig 1” rating, issued by Moody’s Investors Service Inc.
The city is facing a potential $189,000 loss from $2.1 million invested in the county pool under the proposed recovery plan, according to Bankston. The city has received $600,000 from an emergency funding request.
The city also has a water service revenue bond and two redevelopment bonds that have retained their high- and medium-grade rankings, according to Bankston.
“Both of the redevelopment bonds were placed on a credit watch the day after the county’s bankruptcy,” Bankston said. “The city of Seal Beach was the first city in Orange County to achieve removal of the credit watch designation.”
The city tried to withdraw $1.5 million from the investment pool before the county’s Dec. 6 bankruptcy but fell a few days short of the required 30-day notice.
No major cuts in city services are expected from bankruptcy losses, but the city has not calculated the cost of pending flood-control improvements and sand replenishment of badly eroded beaches.
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