Over the past few years, the City of Pico Rivera has demonstrated its commitment to fiscal responsibility. For its proven track record, Standard and Poor's Rating (S&P Global) has upgraded the City’s Public Finance Authority credit rating from an A+ to AA- for its 2009 Lease Revenue Bonds.
The upgraded credit rating reflects the good financial policies and practices that have been adopted by the City Council and implemented by City Management.
S&P Global also noted in the review of the City’s finances, the City’s strong budgetary performance, with operating surpluses in the General Fund and at the total Governmental Fund level. Also in the financial review, the City demonstrated the ability to have strong budgetary flexibility with an available fund balance in fiscal year 2014-2015 of 67% of operating expenditures.
While many other factors contributed to the rating upgrade, S&P Global recognizes the efforts of the City Administration to maintain the long term financial stability of the City.
“This rating upgrade just goes to show you the commitment we all have in the City of Pico Rivera to maintain financial stability” said City Manager René Bobadilla. “City staff continues to look for ways to improve on our budgetary processes that will lead us in the right direction.”
The City Administration continues to make positive strides in securing the financial future of the City of Pico Rivera. With significant reserve policies having been set in place, the City has been able to set aside and maintain a decent reserve fund to help protect against emergencies or unforeseen events. In addition, the City has been able to secure surpluses in its General Fund in recent years, and the trend continues with an expected surplus in Fiscal Year 2015-2016 and a projected estimated surplus of $349,000 for Fiscal Year 2016-2017.
Overall, S&P Global has recognized the strong financial position of the Pico Rivera Public Financing Authority, which is a testament to the City’s efforts to provide high quality public services both efficiently and economically.