Library Construction Certificates Get A+

Certificates being issued to help finance construction of a new library won high marks from a national rating agency.

The report by Standard & Poor’s Corp., which evaluates the financial strength of companies and governments, gave an A+ to Mission Viejo’s $3.3 million in certificates of participation, citing the city’s good fiscal health and credit status.

“I’m pleased as punch to see the financial experts say that we are fiscally sound,” Mayor Sherri M. Butterfield said.

The higher rating will make the city’s certificates more attractive to buyers, particularly in light of Orange County’s late-1994 bankruptcy, said Irwin Bornstein, the city’s chief financial officer.

Though the city’s certificates did not get the top rating, AAA, which generally goes only to large corporations, an A+ is very respectable, local stockbrokers said.

The rating means that the city will have to pay less interest to investors because the certificates, which are similar to bonds, are a good credit risk.

The report noted the city’s healthy reserves of $18.4 million and that revenue is balanced, with 32% coming from property taxes and 29% from sales tax.

The certificates were authorized by the City Council to help pay for the $6.5-million library. City officials say they hope to start construction on the facility by year’s end.