COM 0636.004 1996-1998 - Laserfiche WebLink

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~a Bill 180, Draft Two Page Three 4. What is a bond rating? • Moody's defines a credit rating as, "...an assessment of the ability and willingness of an issuer offixed-income securities to make full and timely payments of amounts due on the security over its life." • In 1993 and 1996, the County received an "A" rating from Moody's. (Attachments A & B) • "Bonds that are rated A possess many favorable investment attributes and are to be considered as upper-medium-grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present that suggest a susceptibility to impairment some time in the future." Guide to Moody's Ratings, Rating Process, and Rating Practices B. Need for the Proposed Bond Authorization at This Time In a letter dated, Januay 23, 1998, we requested further information from County Finance Director, Harry Takahashi, regarding the need for the proposed bond authorization at this time. (Attachment C) We asked the following questions: Your letter of January 7, 7998 (Communication No. 636.03) provided a tentative list of projects that the proposed bond authorization is needed to fund a. Wllh respect to these projects, what wozdd he the implications of the $40 million G.O. bond authorization request not heing approved'? h. YVhat would be the implications of delaying approval qf'/his hoed authorization? c. If these projects cannot be delayed, please explain why and include relevant documentation such as court orders, etc. Please also include a schedule for implementation. 2. Has the availahility of other funding mechanisms for these projects heen explored? 3. What would he the positive impacts of authorizing this $40 million dollar hoed request at this time? We have been informed by Mr. Takahashi that these answers will be provided by the Departments of Planning and Public Works.