Skip to comments.Fresno's reputation for financial problems rubs off on county
Posted on 04/22/2013 12:32:48 PM PDT by Jim Robinson
Fresno's shaky finances are not only hurting the city's reputation in U.S. capital markets. They're hurting Fresno County's, too, according to some financial experts.
Analysts say while Fresno County has maintained a credit-worthy balance sheet, overcoming such hurdles as recession, soaring pension costs and slow economic growth, the county can't shake its association with the famously broke city when it comes to getting financing.
The shared name -- and investor confusion about who is who -- cast a shadow over at least two county debt sales last year, analysts say. And future county sales, such as a planned short-term debt offering this spring, could be menaced as well.
Millions of dollars in interest payments are at stake.
"We've had to be careful to differentiate what was going on with the city and what was going on with the county, particularly for underwriters and investors back East who might not be as familiar with the local dynamic," said David Leifer, senior managing director for the county's financial adviser KNN Public Finance. "We say, 'Listen, we know you hear this buzz going on (about the city), but we're doing things differently.' "
A bad reputation in the capital markets spells trouble for cities and counties in the form of higher interest rates. Because municipalities commonly borrow money for projects and short-term cash, small changes in rates can have big impacts on the bottom line.
(Excerpt) Read more at fresnobee.com ...
"Fresno's bonds, which pay for such items as pensions and the Convention Center, are now generally rated at junk status (Ba1 and Ba2)."
"Public services, such as parks, policing and welfare programs, have slipped as a result, but the $1.8 billion budget has remained in check. County administrators have also cut employee salaries."
California and her local governments continue spending themselves into oblivion. Oh, gee. Now their having trouble borrowing to cover their big spending projects, er, boondoggles and meet their pension obligations. Poor government union workers are going to suffer as a result. Meanwhile, cities, counties and the state go down the tubes and our property values plummet.
Anyone up for a discounted high speed bullet train ride to nowhereville, courtesy Jerry Brown?
Make mine a one-way ticket out. Thankyouverymuch.
Only liberals can take a beautiful money making paradise and turn it into sludge.
Oh well, the “big one” will cleanse things.
And the state is going to build the High Speed Rail from Desperation to Bankruptcy.
Best source for related stories: Victor Davis Hansen
Hoover Institute Fellow @ Stanford, military history genius, consummate knower of ALL trends in the central California valley.
The nutshell: Two orders exist in California, one that is highly bureaucratized and expensive to operate in for natives, and another in parallel for illegals, characterized by NO CONTROLS AT ALL:
Have a hanker to dump troughs of taco truck fat down the highway as you drive? NO PROBLEMO..!
Your profession is selling all manner of baubles at a country road intersection? NO PROBLEMO..!
Dump 100 bambino diapers on the road shoulder? NO PROBLEMO...!
Live in a shantytown of trailers festooned with live wires and gaudy Jesus figurines? NO PROBLEMO...!
But ya say you operate a cow-enslaving DAIRY...?
***10,000 bureaucrats with clip-boards and guns barge in with pointed accusations.***
It’s like dominoes Jim, up and down the state -San Bernadino, Stockton, one after another with no hope in sight.
The train is going to go from Boon to Doggle. Unbelievable that the idiots in Sacramento insist on 18th century technology. I live in So Cal and if I need to get “up north” it is one hour or less by plane— why would I hassle with a train?
Just paid my state, federal and property taxes - among the highest in the country and tuition at TWO UCs, which has gone up 75% in the past 5 years. Gas is still hovering around $4.00/gallon and insurance has gone up again.
How can I leave? I have elderly relatives that live here and this is my HOME.
Sigh. I feel like a rat on a sinking ship.
They did it to Detroit, Chicago, LA, they can do it anywhere and everywhere. It’s Marxist Obama’s intent. Let no crisis go wasted in the rush to destroy capitalism.
What’s next? Governments looting bank accounts?