July 2, 2025 Breaking News, Latest News, and Videos

Moody’s Downgrades Santa Monica Lease Revenue Bond One Notch:

Moody’s Investors Service on Monday downgraded the lease revenue bond rating of the City of Santa Monica from to Aa2 from Aa1.

The one notch lease revenue bond downgrade reflects Moody’s opinion that a two notch rating distinction between the city’s Aaa general obligation bond rating and the Aa2 lease-backed obligation rating reflects the weaker security pledge for lease-backed obligations and reflects the additional risk to bondholders from the city’s financial, operational, and economic conditions over the more secure general obligation pledge.

Under California law, a city’s general obligation pledge is an unlimited ad valorem pledge of the city’s tax base.

According to Moody’s, the city must raise property taxes by whatever amount necessary to repay the obligation, irrespective of its underlying financial position.

“A lease pledge is a contractual obligation, on parity with a city’s other unsecured obligations, backed by all of the city’s available financial resources. Moody’s holds this opinion notwithstanding the dedicated revenue sources for the city’s Lease Revenue Bonds, Series 2011A; Lease revenue Bonds, Series 2004; and the Parking Authority Lease Revenue Bonds, Series 2002,” Moody’s said Monday.

Moody’s said the confirmation of the city’s Aaa general obligation bond rating reflects a number of factors:

— the city’s large and diverse tax base that has undergone minimal declines throughout the economic downturn and that has increased in value over the past two fiscal years;

— strong socioeconomic profile that that has strengthened as of the 2010 census; a healthy balance sheet, characterized by robust reserves that have continued to increase despite the recent economic recession and strong ending cash position; moderate general obligation debt and lease-obligation burden;

— and relatively small annual required pension and other postemployment benefit (OPEB) contributions as a percentage of general fund operating expenditures.

Moody’s said the outlook on the ratings is stable.

“After several years of operating surpluses, the city’s unaudited general fund performance was again positive in fiscal 2012, and the local and regional economy are improving sufficiently to support projected fiscal 2013 expenditures,” Moody’s said.

Moody’s states the City’s large and diverse tax base and exceptionally strong financial operations featuring sizeable reserves as its strengths.

It states the City’s challenge was economically sensitive tax revenues based on tourism and the local economy and resident wealth levels below the medians for Aaa-rated U.S. cities.

in News
<>Related Posts

Proposed Rebuilding Authority for Wildfire Recovery Sparks Local Control Debate

July 2, 2025

July 2, 2025

Plan Aims to Streamline Rebuilding but Raises Questions Over Community Input A proposed “Resilient Rebuilding Authority” to oversee recovery from...

Pentagon Orders Troop Drawdown in LA: 150 National Guard Members Reassigned to Wildfire Duty

July 2, 2025

July 2, 2025

Federal Forces Begin Partial Withdrawal From Protest Response as California Leaders Push Back U.S. Northern Command announced Tuesday that 150 National Guard...

(Video) ‘World’s Strongest Man’ Champion Pulls Big Blue Bus for 30 feet

July 1, 2025

July 1, 2025

World-class strongman Martins Licis pulled a 34,680‑pound, 35-feet long, battery electric bus through the Pier to set off Pier 360...

California Highway Patrol Deploys for Independence Day Enforcement Surge

July 1, 2025

July 1, 2025

All Available Officers to Hit California Highways for Holiday Weekend As Californians gear up for Fourth of July festivities, the...

Court Postpones Arraignment for Driver in Malibu Crash That Killed Four Students

July 1, 2025

July 1, 2025

Fraser Michael Bohm Faces Murder Charges in Fatal PCH Wreck  The arraignment for Fraser Michael Bohm, the 23-year-old man accused...

More Commercial Uses Could Be Coming to RAND Building

July 1, 2025

July 1, 2025

Amendment Unlocks New Opportunities, Secures $5.5 Million in Community Benefits The Santa Monica Planning Commission unanimously approved an amendment to...

People are Using Palisades for “Disaster Tours.” Local Officials Are Trying to Stop Them

July 1, 2025

July 1, 2025

A new motion introduced to City Council requests a coordinated strategy from LADOT, the Los Angeles Police Department, and the...

Santa Monica Favorite Esters Rebrands as Esters Wine Shop & Oyster Bar

June 30, 2025

June 30, 2025

New Concept Launches With French-Spanish Flair and Free Bubbles Esters Wine Shop, the fave Parisian-style wine bar in downtown Santa...

Letter to the Editor: Santa Monica’s Great Park: It’s Time to Deliver on 100 Years of Promise

June 30, 2025

June 30, 2025

Santa Monica stands at the edge of history. For nearly a century, residents have consistently supported turning the airport land...

Why Nordstrom Says It’s Closing Its Santa Monica Place Location

June 30, 2025

June 30, 2025

A Nordstrom spokesperson explained the closure as a strategic realignment Nordstrom confirmed its decision to close its Santa Monica store...

Three-Bed Palisades Highlands Townhouse Hits Market for $1.7M

June 30, 2025

June 30, 2025

The Mediterranean-style property, located at 1529 Michael Lane, is part of a 71-unit community A remodeled 1,919-square-foot townhouse in the...

Six-Bed Mar Vista Hilltop Home Under Construction Lists for $5.3M

June 30, 2025

June 30, 2025

The private backyard is complete with a pool, spa, fire pit, built-in BBQ, and areas for outdoor dining A stunning...

(Video) Getty Villa Reopens Six Months After Dodging Destruction of Palisades Wildfires

June 29, 2025

June 29, 2025

With the reopening also comes a new exhibit, “The Kingdom of Pylos” Getty Villa Reopens Six Months After Dodging Destruction...

Free Virtual Planetarium Shows Coming to SMC in July

June 29, 2025

June 29, 2025

The virtual format is in place as construction of the new SMC Planetarium and Observatory nears completion The Santa Monica...

Santa Monica Adopts $793.3M Budget for FY25-27, Prioritizing Housing and Safety

June 29, 2025

June 29, 2025

The budget preserves core services and invests in major projects, including over $1 billion in hotel investments The Santa Monica...