Bond rating agency Fitch announced it gave the City of Menlo Park’s general obligations bonds the highest rating possible this week.
This fact pleased Carol Augustine, the city’s finance director. She said it was “a spectacular rating given the state of the California economy and the recent State grab on local revenues.”
Almost a year ago, California dissolved the city’s Redevelopment Agency, which funded development projects and social services in the Belle Haven neighborhood. This left the city to identify other sources of income, and cut costs.
Fitch considered the city’s financial position, tax base, economy, high wealth and income levels, and management structure to make this decision.
“Additional sources of financial flexibility include an authorized, but unimplemented increase in the City’s utility user’s tax and a proposed increase in the transient occupancy tax to be considered by Menlo Park voters in November 2012,” read the announcement.
The city is placing a transient occupancy tax, known as Measure K, on the ballot this November.