Palmdale’s recent credit rating increase from A+ to Aa-/stable by Standard and Poor’s Ratings Services is reportedly paying dividends.
When the city council voted in February to unanimously authorize the issuance and sale of lease revenue bonds to refund and refinance outstanding debt, the expected service savings was $2.3 million. The actual savings in the March 21 bond sale amounted to $2.8 billion, representing an extra $500,000 more than originally anticipated.
“According to our broker, Palmdale’s name is very strong in the bond market due to our increased credit rating and S&P’s very positive review of our fiscal management,” said Jim Purtee, Palmdale city manager. “Our bonds were in high demand—five to six times more requested than we had available—allowing our broker to negotiate greater savings for us.”
Palmdale Mayor Jim Ledford added: “This is more great fiscal news for the city and our residents. Fiscal stewardship is something we take great pride in as an organization. Congratulations to our city manager and finance team for working so diligently to keep our city financially strong.”
