Los Angeles' bond rating downgraded
$this->bbcode_second_pass_quote('', 'J')ust when Los Angeles officials thought they had turned a corner in improving the city's recession-riddled financial standing, a major Wall Street rating agency Tuesday downgraded its bonds.
Analysts at Moody's Investor Service Inc. said their one-notch downgrade reflects the city's modest revenue forecast and mounting employee costs. The Aa3 rating, which is on par with assessments recently given by other rating firms, means taxpayers may have to pay higher interest for about $500 million in bonds that city officials are planning to sell later this month.
But within Moody's report was a kernel of good news: The agency raised its rating of the city's future financial outlook from negative to stable on expectations that officials will "capably manage" the fiscal challenges.
PeakOil is You
THE Muni Thread (merged)
Re: The Muni Crash Thread
by mattduke » Tue 12 Jul 2011, 23:37:33
http://www.latimes.com/news/local/la-me ... 1991.story
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mattduke - Intermediate Crude
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Re: The Muni Crash Thread
by mattduke » Tue 12 Jul 2011, 23:40:04
$this->bbcode_second_pass_quote('', 'T')he small city of Central Falls, R.I., appears to be headed for a rare municipal bankruptcy filing, and state officials are rushing to keep its woes from overwhelming the struggling state.
Gretchen Ertl for The New York Times
Just over one square mile, Central Falls has a tightly packed population.
The impoverished city, operating under a receiver for a year, has promised $80 million worth of retirement benefits to 214 police officers and firefighters, far more than it can afford. Those workers’ pension fund will probably run out of money in October, giving Central Falls the distinction of becoming the second municipality in the United States to exhaust its pension fund, after Prichard, Ala.
“Time is running out,” warns Robert G. Flanders, the state-appointed receiver, who recently closed the public library and a community center to save money. He has no power to cancel the city’s contracts with workers, so instead he has begun approaching retired police officers and firefighters with what he describes as “the Big Ask”: will they voluntarily accept smaller benefits in the name of saving Central Falls?
Gretchen Ertl for The New York Times
Just over one square mile, Central Falls has a tightly packed population.
The impoverished city, operating under a receiver for a year, has promised $80 million worth of retirement benefits to 214 police officers and firefighters, far more than it can afford. Those workers’ pension fund will probably run out of money in October, giving Central Falls the distinction of becoming the second municipality in the United States to exhaust its pension fund, after Prichard, Ala.
“Time is running out,” warns Robert G. Flanders, the state-appointed receiver, who recently closed the public library and a community center to save money. He has no power to cancel the city’s contracts with workers, so instead he has begun approaching retired police officers and firefighters with what he describes as “the Big Ask”: will they voluntarily accept smaller benefits in the name of saving Central Falls?
http://www.nytimes.com/2011/07/12/busin ... ss&emc=rss
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mattduke - Intermediate Crude
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Re: The Muni Crash Thread
by mad_marten » Wed 13 Jul 2011, 02:46:30
$this->bbcode_second_pass_quote('mattduke', '')$this->bbcode_second_pass_quote('', 'T')he small city of Central Falls, R.I., appears to be headed for a rare municipal bankruptcy filing, and state officials are rushing to keep its woes from overwhelming the struggling state.
Gretchen Ertl for The New York Times
Just over one square mile, Central Falls has a tightly packed population.
The impoverished city, operating under a receiver for a year, has promised $80 million worth of retirement benefits to 214 police officers and firefighters, far more than it can afford. Those workers’ pension fund will probably run out of money in October, giving Central Falls the distinction of becoming the second municipality in the United States to exhaust its pension fund, after Prichard, Ala.
“Time is running out,” warns Robert G. Flanders, the state-appointed receiver, who recently closed the public library and a community center to save money. He has no power to cancel the city’s contracts with workers, so instead he has begun approaching retired police officers and firefighters with what he describes as “the Big Ask”: will they voluntarily accept smaller benefits in the name of saving Central Falls?
Gretchen Ertl for The New York Times
Just over one square mile, Central Falls has a tightly packed population.
The impoverished city, operating under a receiver for a year, has promised $80 million worth of retirement benefits to 214 police officers and firefighters, far more than it can afford. Those workers’ pension fund will probably run out of money in October, giving Central Falls the distinction of becoming the second municipality in the United States to exhaust its pension fund, after Prichard, Ala.
“Time is running out,” warns Robert G. Flanders, the state-appointed receiver, who recently closed the public library and a community center to save money. He has no power to cancel the city’s contracts with workers, so instead he has begun approaching retired police officers and firefighters with what he describes as “the Big Ask”: will they voluntarily accept smaller benefits in the name of saving Central Falls?
http://www.nytimes.com/2011/07/12/busin ... ss&emc=rss
How do you get 214 ex officers/firefighters in what a 30-40 yr period for a town less than one square mile. That's like 5 new ones every single year. Unbelievable
I always ask myself who made these deals and how can I get in one?
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