The City of Pico Rivera announced today that it completed a refunding of its 2009 Lease Revenue bonds, which will result in savings of $9.4 million dollars over the remaining term of the bonds. Standard & Poor’s reviewed the City’s credit strength as part of the refinancing and they upgraded the bonds from A+ to AA-. The refunding bonds were brought to market by, Stifel, Nicolaus & Company, Incorporated the State’s top underwriter of California municipal bonds in 2014 and 2015.

“This action reflects the City’s ongoing commitment to reducing costs when market conditions present opportunities”, said Mayor David Armenta. “The City Council and City staff responded to a market opportunity in a decisive manner, which was critical to the success of the effort.  This is just like a homeowner refinancing at a lower rate.  In this case, we are able to apply the savings toward city services.”   

“We are extremely pleased with the pricing and refunding savings achieved,” said City Manager René Bobadilla.  City Manager Bobadilla also stated that the City monitors its bonds and is always on the look-out for savings.  The City concurs with S & P’s rating which reflects their view of the city’s strong management, our “good” financial policies and practices and strong budgetary performance. The City has rebounded from recent budgetary deficits to our current operating surpluses in the general fund.

The “AA-” ratings from S & P represent high marks for the City,” added City Treasurer/Finance Director Michael Solorza.  “This very strong credit rating speaks well of our City efforts to responsibly manage rates and the City’s financials.  

We worked closely with City Staff and their advisor, Wolf & Company to make sure that the financing program met the City’s goals”, commented Jose Vera, Managing Director with Stifel, Nicolaus & Company.  “Pico Rivera is a quality name in the southern California municipal bond market and we sold bonds to a wide range of individual investors.  It helped a lot that the City was able to move so quickly to respond to the market.”