City’s bonds get stable rating

Bills

Standard
&
amp; Poor’s issued the City of Gilroy a

AA rating with a stable outlook

on a series of bonds refinancing a South County Regional Water
Authority wastewater facility that Gilroy jointly operates with
Morgan Hill. Standard
&
amp; Poor’s also affirmed the city’s issuer credit rating as
AA.
Standard & Poor’s issued the City of Gilroy a “AA rating with a stable outlook” on a series of bonds refinancing a South County Regional Water Authority wastewater facility that Gilroy jointly operates with Morgan Hill. Standard & Poor’s also affirmed the city’s issuer credit rating as AA.

As the city moves forward with a future wastewater treatment plant expansion project, city officials will evaluate the rate structure needed to support expansion costs and will likely issue bonds to fund the city’s portion of the project, city spokesman Joe Kline indicated in a prepared statement.

The city has set aside certain reserves for its sewer system, which, along with the sewer development impact fund, will be used to partially fund future improvement projects.

Kline noted that the AA rating is one of several good ratings that the city has received from S&P and Fitch Ratings. The city also received a AA rating from S&P for its library bonds.

City officials attributed the positive outlook to a “stabilized budgetary situation” resulting from a trimmed budget in fiscal year 2008-09. The city cut about $3.8 million from that budget, resulting in the elimination of 48 full-time city staff positions as well as other part-time jobs. In addition, 23 vacant position were frozen in December 2008.

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