The City of West Hollywood has received an ‘AA+’ rating from Standard & Poor’s Rating Services (S&P) for its LRBs (Lease Revenue Bonds) series 2013, which will be issued to finance the construction of the City’s new automated parking garage. ‘AA+’ is the highest possible rating. Additionally, the City’s implied GO (General Obligation) bonds have been re-affirmed at an ‘AAA,’ also the highest possible rating.
The majority of bond proceeds will be used to construct an automated parking structure, with a 7,000 square foot community plaza and related street improvements. The City recently received similar high marks from Fitch Ratings.
“I’m proud that our City has received the highest possible rating on its financial position,” said West Hollywood Mayor Abbe Land. “As a Council, we strive to make prudent fiscal decisions to ensure our reserves are strong. The Fitch and S&P Ratings unanimously confirm that our bond and overall financial operations are extremely well-performing,” continued Mayor Land.
According to the recent Fitch Ratings report, “The ratings reflect our view of the City’s:
- Historically strong financial performance supported by comprehensive management policies and high reserves;
- Healthy economy and extremely strong tax base, which is integrated into the broad and diverse Los Angeles metropolitan economy; and
- Diverse general fund revenues supported by the City’s status as a destination for tourism, retail shopping and business travel.
West Hollywood serves an estimated population of 35,853 in Los Angeles County and covers a small, 1.88 square-mile area directly adjacent to the cities of Beverly Hills and Los Angeles.
The City’s status as a destination for tourists, shoppers, and business travelers has contributed to its strength and resilience even during the recent economic downturn. Income levels in the City are very strong, in our opinion, with per capita effective buying income 187% of the national level. Between fiscal 2008 and fiscal 2013, market value has grown by an annual average rate of 3.1% to $7.6 billion, or $219,290 per capita, which we consider extremely strong.”
In light of the continued struggles that have dogged economic recovery for many government agencies, in contrast the City of West Hollywood has been able to expand its services and remain financially stable. The City continues to focus on funding much needed social services, maintaining high-quality infrastructure and increasing public safety. As a result of the City’s strong fiscal health, during otherwise tough economic times the City of West Hollywood has increased funding for social service programs for contracts to social service providers in the amount of $250,000 for services for residents. In addition to working with and funding social service agencies, the City continues to address social service needs with its free CityLine Shuttle and Dial-A-Ride Programs, and bus passes and taxi coupons for seniors and people living with disabilities.