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HomeMy WebLinkAboutMINUTES - 10131987 - 2.2 Vo: BOARD OF SUPERVISORS FROM: Phil Batchelor Contra County Administrator � DATE; October 8, 1987 Costa . County SUBJECT: Increase in Rating of County' s Outstanding Debt SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AM.JUSTIFICATION RECOMMENDATION• Acknowledge receipt of this report from the County Administrator noting that both Moody' s Investor Service and Standard & Poor's have upgraded their rating on the County' s current Integrated Telecommunications Network financing and that Moody's has also chosen to upgrade all of the outstanding debt of the County. BACKGROUND: Attached is a letter from Arnold F. Mazotti, vice President-Director of Marketing for the Bank of America' s Public Finance Department. Mr. Mazotti notes that the recent financing which has allowed the County to purchase its telephone system, stabilize its charges from Pacific Bell and thereby achieve substantial savings has been rated A-1 by Moody's and A by Standard & Poor' s. In addition, Moody' s has chosen to upgrade all of the County's outstanding debt. Mr. Mazotti goes on to note that this is the third upgrade the County has received in the past 3-1/2 years. The Board of Supervisors should be congratulated for this significant achievement. It has happened only because of the Board' s willingness 'to establish adequate reserves and maintain those reserves. The Board has also held the line on new program expenditures and has placed a major emphasis on establishing performance measures which clearly demonstrate that Contra Costa County is one of the most efficiently administered and best-managed counties in California. The Board has challenged the private sector to enter into public-private sector partnerships with the County. The allocation of funds for. "Challenge Grants" in the current fiscal year clearly demonstrates the Board' s belief that government must find new and innovative ways to finance programs without having to carry the entire burden itself. This insistence by the Board of Supervisors on increasing productivity and efficiency is further demonstrated by the extent CONTINUED ON ATTACHMENT. X YES SIGNATURE: 61L( %^'6. _ _ RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE X_ APPROVE OTHER S I GNATURE I S 1: , L y ACTION OF BOARD ON _n/y_tQLer 13, 1987 APPROVED AS RECOMMCMDED X OTHER The Board acknowledged receipt of the above report -and COMMENDED County staff, particularly Phil Batchelor, Donald Bouchet, Al Lomelli and DeRoyce Bell for their efforts in this matter. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT _ ? AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: _ OF SUPERVISORS ON THE DATE SHOWN. cc: County Administrator ATTESTED October 13, 1987 Auditor-Controller PHIL BATCHELOR. CLERK OF THE BOARD OF Treasurer-Tax Collector SUPERVISORS AND COUNTY ADMINISTRATOR Arnold Mazotti , Bank of America M382/7-83 BY ,DEPUTY 1 Page 2 9 to which additional computers have helped enormously to take up the added workload so that each employee is far more productive than was the case even a few years ago. Only in this way has the County been able to continue to respond to growing service . demands without increasing expenditures proportionately. The Board' s continued adherence to the principles of increased productivity and efficiency coupled with fiscal prudence should allow the County' s borrowing programs to again achieve the highest ratings available and thereby continue to hold down borrowing costs. We join Mr. Mazotti in commending the Board for an outstanding achievement with our rating agencies. i BAN KOF AM ERICA PUBLIC FINANCE DEPARTMENT I Contra F= A.F.MAZOTTI S E rn vice Pres dem-D;reclor o!Marke:rig l.i Hyl (.J[f U11ay :.i. September 18, 1987 Mr. Philip Batchelor Clerk of the Board and County Administrator County of Contra Costa 651 Pine Street - Martinez, California 94553 ff Dear Phil :' I I It is our pleasure to inform you that Moody' s Investor Service has assigned the County of Contra Costa a rating of Al on the current Countywide Integrated Telecommunications Network financing. Standard and Poor' s has assigned to this financing a provisional rating of A. In performing their review of this particular offering, Moody' s has chosen to upgrade all of the outstanding debt of the County. Fixed Asset debt was upgraded from A to Al and Equipment Financing debt upgraded from Baal to A as follows: I Prior Rating Upgrade i 1983 Series A Bonds A Al Capital Project III A Al Capital Project IV and V Con A Con Al Capital Project VI Con Baal Con A The decision by Moody' s to upgrade the County was a function of the County' s demonstrated strong financial performance over the past 3 1 /2 years. The Board of Supervisiors and Administrative Staff of Contra Costa County has been able to achieve these commendable results through: • The implementation of financial controls and the reduction in operating expenses . • The establishment of adequate reserves and ensuring that those reserves are maintained at acceptable levels . • Increased operational efficiencies including the current financing which is expected to result in significant cost savings to the County. BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION • BOX 37003 • SAN FRANCISCO.CALIFORNIA 94137 Mr. Philip Batchelor September 18, 1987 i Page Two I The ability of the County to so aptly communicate these financial I improvements to the Moody' s Rating Analysts was key in obtaining this favorable upgrade. This represents the third upgrade the County has received in the past 3 1 /2 years. This upgrade will not only elevate Contra Costa County' s standing as a premiere County in the State of California, but will result in significant savings in debt service payments in this current issue as well as future issues. The Bank of America is pleased to have been able to serve the County during this period and looks forward to .providing any future assistance that we can. Sincerely, f A• ►� Arnold F. Mazotti Vice President AFM:rf I n n 7 1 M