07-03-10, Hal Weber Comments on Fitch Downgrade of GWP 2008 Water Revenue Bonds from Stable to Negative!

In case you are wondering why there is so much pressure on the Glendale City Council to raise water rates, notice in this Fitch water bond rating how the negative effect that transfers from GWP into the General Fund in order to sustain the excessive salaries and pensions of the four employee associations has finally come home to roost:

“Fitch Ratings-San Francisco-24 June 2010: Fitch Ratings affirms approximately $50 million of Glendale Water & Power (CA) series 2008 water revenue bonds as part of its continuous surveillance effort. The Rating Outlook is revised to Negative from Stable. The Negative Outlook reflects downward pressure on financial margins at the utility and the absence of financial flexibility given the limited cash flow after the general fund transfer. The financial forecast relies on additional annual rate increases to maintain these slim margins and to support increasing debt service. Any further deterioration in margins, such that annual revenues do not fully support...;”

Hal Weber

Related information: The Glendale California Budget

Home Page of Open Government (???) in Glendale California:  www.oggc.org