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RSM Gets Highest Credit Rating Available

Standard & Poor's slaps a AAA rating, its highest, on the city of Rancho Santa Margarita. The city is already taking advantage of it.

Good financial management and a great credit rating. That sums up Rancho Santa Margarita based on a memorandum from Standard & Poors in a recent financial report.

The city was assigned a AAA rating, the highest available. Citing Rancho Santa Margarita's strong income, wealth, maintenance of very strong available General Fund reserves, and good financial management policies and practices, Standard & Poor’s notified the City of its increased rating in late November.  

“At a time when so many cities are drowning in debt and deficit, we are proud Rancho Santa Margarita is financially strong ," said Tony Beall, who recently began his third consecutive one-year term as mayor. "We have the highest possible credit rating, a balanced budget and finished last (fiscal) year with $1.2 million dollar surplus and $20 million in reserves.”

The AAA rating will enable to city to realize outstanding interest rates that will be applied to the recent refinancing of its Civic Center Bonds.  By refinancing $11.2 million dollars of debt that was originally issued in 2003 to build City Hall and the Bell Tower Regional Community Center, the city will realize a cost savings of ­­­$2.1 million over the remaining 21-year term of the bonds.

Sharon Y. December 28, 2012 at 02:13 AM
True blue, you sound like a sore loser from the last election
owen callahan December 28, 2012 at 02:27 AM
You got that right Sharon! I wonder if trueblue will lie about graduating from college?
Martin Henderson December 28, 2012 at 01:11 PM
You've piqued my interest! Which useless consulting fees (and for clarification purposes, which annual budget) are you referring to? My understanding is that the City runs a pretty tight ship, but I'm sure the city manager—as well as the council—would very much like to know how it can stretch its dollar even further.
April Josephson December 28, 2012 at 06:08 PM
The thing that "TrueBlueAmerican" doesn't acknowledge or seem to understand is that the city council members spend many days each year studying the budget and directing Mr. Boyer and other staff members how to manage the money. Credit goes to both staff and council on this. Ultimately, the triple A rating can only be accomplished through a joint effort. Congratulations to Team RSM! Too bad that TBA never attended any of the budget study sessions to learn how the process actually works. Such uneducated negative comments only reflect poorly on those who make them, as others can see this person's real agenda.
TrueBlueAmerican December 28, 2012 at 09:52 PM
What? Trueblueamerican graduated from the University of California Berkeley!

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