Malibu has always been known for being well-off financially. On Aug. 1, the city announced that Malibu has once again proved its reputation by earning top-notch credit and bond ratings.
A press release from the City of Malibu explains, “The bond-rating agency S&P Global Ratings (S&P) assigned the highest credit rating available for a city’s bonds, its ‘AA+’ long-term rating, for the City of Malibu’s 2018 Certificates of Participation (COPs) on July 26. S&P also affirmed its ‘AA+’ long-term rating on the City’s outstanding COPs, and its “AAA” issuer credit rating (ICR) on the City.”
The rating will make it possible for the city to purchase historic open space, specifically 29.24 acres from the Malibu Bay Company for the company’s future use. Malibu residents will also benefit from great interest rates by saving taxpayer dollars.
The land purchase agreement was approved by the city council on July 9 along with the issuance of COPs to fund part of the expenditure. Council had discussed land acquisitions during closed session previously this year, but further action had not been taken until now.
“Thanks to the economic health of our community and the City’s long record of outstanding fiscal management and transparency, Malibu can purchase this land that will serve the people of our community long into the future,” Mayor Rick Mullen said in a press release from the City of Malibu.
The S&P listed factors that helped Malibu earn the AA+ rating, among which included a very strong economy, budgetary performance, budgetary flexibility and liquidity.
Malibu’s credit report can be found at malibucity.org/financialreports.