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Inside this week: SATURDAY, MARCH 1, 2014 VOLUME 8 NO. 9 Sierra Madre City Council 2014 As indicated in their devastating report that dropped the city’s credit rating last year, Moody’s made another assessment of Sierra Madre’s creditworthiness on Friday. The news was good from the standpoint that our credit rating was not dropped any lower and that the city is no longer under review. The bad news is that the rating did not improve. The following is the official reporton the state of the city’s water company’s, and ultimately the city’s credit status: Global Credit Research - 27 Feb 2014 $2.6M debt affected New York, February 27, 2014 -- Moody's Investors Service has confirmed the Ba1 rating on the City of Sierra Madre (CA) Water Enterprise's 1998 Revenue Bonds, of which there is currently about $2.6 million outstanding. The enterprise has an additional $7.9 million in outstanding debt not rated by Moody's but considered in our analysis, including $6.8 million Series 2003 parity bonds. The 1998 bonds are secured by a senior lien on the net revenues of the water enterprise. Concurrently, we have removed the rating from review. The rating was placed under review for further possible downgrade on December 12, 2013 in anticipation of the outcome of Proposition 218 rate increase protest. The protest failed and a rate increase ordinance has been adopted by the city. SUMMARY RATING RATIONALE The affirmation reflects the successful adoption of rate increases for fiscal 2014 through 2018, effective on March 1 2014. The Ba1 rating also incorporates several years of failure to implement rate increases to provide sufficient debt service coverage, the enterprise's moderately sized customer base with an above average socioeconomic profile, as well as aging infrastructure that requires STRENGTHS -Customer base with above average socioeconomic profile -Debt service reserve fully funded with cash -Newly adopted rate increases will result in additional revenues CHALLENGES -History of rate covenant violations -Weakened financial position with diminished reserves -Aging infrastructure requiring significant reinvestment -Historically lackluster political will toimplement rate increases sufficient to maintain healthy operations -Expected rise in operating expenses tied to increased water purchases -Late implementation of adopted rate increases WHAT COULD MOVE THE RATING UP -Sustained and material improvement of debt service coverage leading to compliance with rate covenants -Significant improvement in reserves -Long-term stable customer growth WHAT COULD MOVE THE RATING DOWN -Rescinding of Proposition 218 rate increases -Further declines in debt service coverage -Loss of customers and revenue sources -Further violations of bond covenants significant improvements. The principal methodology used in this rating was Analytical Framework For Water And Sewer System Ratings published in August 1999. Please see the Credit Policy page on www.moodys.com for a copy of this methodology. The company made it very clear in their assessment that the passage of the Prop 218 water rate increase was a factor in preventing further lowering of the city’s credit rating. The credit rating impacts more than just the city’s bonds. In the event of a disaster or other unforeseen circumstance, the water company, although it is a separate entity of the city, and its challenged credit rating will impair the city’s ability to borrow, refinance or engage in many other fiscal activities at a reasonable interest rate. It may even cripple the city’s ability to restructure its finances totally. For more information on the history of the downgrade go to: http://mtnviewsnews. com/v07/htm/n50/index.htm S. Henderson/Mountain Views News SANDBAGS AVAILABLE The Public Works Department is making available sand and sandbags for all residents. The sand and sandbags are located at City Yards, in Sierra Vista Park which is located at 611 E. Sierra Madre Blvd., Sierra Madre, CA 91024. Take the access road on west side of the park, closest to the Pioneer Cemetery. Continue northbound on the road past the tennis courts and the Sierra Madre Rose Float Barn to reach City Yards. Please be aware you will need to bring a shovel to fill the sandbags. Residents have access to the sandbags from 6:00am-10:00pm. For more information contact the Public Works Department at 626-355-7135. CELEBRATING 44 YEARS OF GOOD WORKS, WINE & FOOD Smiling for the camera at the Friends of the Sierra Madre Library’s 44th Annual Wine and Cuisine Tasting event and totally unaware of being photo-bombed, are Library Trustees Pete Siberell and Glenn Putnam. Well over 100 guests tasted the wares of 18 wine vendors and 20 restaurants at Villa del Sol d’Oro, Alverno on Friday evening. Funds raised from the event help support Sierra Madre libraryoperations. Photo and caption by S. Henderson NEW JERSEY IN KERSTING COURT? Story on page B1 CREDIT RATING AGENCY DELIVERS GOOD AND BAD NEWS TO CITY Moody’s Removes Sierra Madre From Review - No Further Downgrade SATURDAY, MARCH 1, 2014 VOLUME 8 NO. 9 Sierra Madre City Council 2014 As indicated in their devastating report that dropped the city’s credit rating last year, Moody’s made another assessment of Sierra Madre’s creditworthiness on Friday. The news was good from the standpoint that our credit rating was not dropped any lower and that the city is no longer under review. The bad news is that the rating did not improve. The following is the official reporton the state of the city’s water company’s, and ultimately the city’s credit status: Global Credit Research - 27 Feb 2014 $2.6M debt affected New York, February 27, 2014 -- Moody's Investors Service has confirmed the Ba1 rating on the City of Sierra Madre (CA) Water Enterprise's 1998 Revenue Bonds, of which there is currently about $2.6 million outstanding. The enterprise has an additional $7.9 million in outstanding debt not rated by Moody's but considered in our analysis, including $6.8 million Series 2003 parity bonds. The 1998 bonds are secured by a senior lien on the net revenues of the water enterprise. Concurrently, we have removed the rating from review. The rating was placed under review for further possible downgrade on December 12, 2013 in anticipation of the outcome of Proposition 218 rate increase protest. The protest failed and a rate increase ordinance has been adopted by the city. SUMMARY RATING RATIONALE The affirmation reflects the successful adoption of rate increases for fiscal 2014 through 2018, effective on March 1 2014. The Ba1 rating also incorporates several years of failure to implement rate increases to provide sufficient debt service coverage, the enterprise's moderately sized customer base with an above average socioeconomic profile, as well as aging infrastructure that requires STRENGTHS -Customer base with above average socioeconomic profile -Debt service reserve fully funded with cash -Newly adopted rate increases will result in additional revenues CHALLENGES -History of rate covenant violations -Weakened financial position with diminished reserves -Aging infrastructure requiring significant reinvestment -Historically lackluster political will toimplement rate increases sufficient to maintain healthy operations -Expected rise in operating expenses tied to increased water purchases -Late implementation of adopted rate increases WHAT COULD MOVE THE RATING UP -Sustained and material improvement of debt service coverage leading to compliance with rate covenants -Significant improvement in reserves -Long-term stable customer growth WHAT COULD MOVE THE RATING DOWN -Rescinding of Proposition 218 rate increases -Further declines in debt service coverage -Loss of customers and revenue sources -Further violations of bond covenants significant improvements. The principal methodology used in this rating was Analytical Framework For Water And Sewer System Ratings published in August 1999. Please see the Credit Policy page on www.moodys.com for a copy of this methodology. The company made it very clear in their assessment that the passage of the Prop 218 water rate increase was a factor in preventing further lowering of the city’s credit rating. The credit rating impacts more than just the city’s bonds. In the event of a disaster or other unforeseen circumstance, the water company, although it is a separate entity of the city, and its challenged credit rating will impair the city’s ability to borrow, refinance or engage in many other fiscal activities at a reasonable interest rate. It may even cripple the city’s ability to restructure its finances totally. For more information on the history of the downgrade go to: http://mtnviewsnews. com/v07/htm/n50/index.htm S. Henderson/Mountain Views News SANDBAGS AVAILABLE The Public Works Department is making available sand and sandbags for all residents. The sand and sandbags are located at City Yards, in Sierra Vista Park which is located at 611 E. Sierra Madre Blvd., Sierra Madre, CA 91024. Take the access road on west side of the park, closest to the Pioneer Cemetery. Continue northbound on the road past the tennis courts and the Sierra Madre Rose Float Barn to reach City Yards. Please be aware you will need to bring a shovel to fill the sandbags. Residents have access to the sandbags from 6:00am-10:00pm. For more information contact the Public Works Department at 626-355-7135. CELEBRATING 44 YEARS OF GOOD WORKS, WINE & FOOD Smiling for the camera at the Friends of the Sierra Madre Library’s 44th Annual Wine and Cuisine Tasting event and totally unaware of being photo-bombed, are Library Trustees Pete Siberell and Glenn Putnam. Well over 100 guests tasted the wares of 18 wine vendors and 20 restaurants at Villa del Sol d’Oro, Alverno on Friday evening. Funds raised from the event help support Sierra Madre libraryoperations. Photo and caption by S. Henderson NEW JERSEY IN KERSTING COURT? Story on page B1 CREDIT RATING AGENCY DELIVERS GOOD AND BAD NEWS TO CITY Moody’s Removes Sierra Madre From Review - No Further Downgrade SIERRA MADRE Calendar Page 2 Sierra Madre News Page 3 PASADENA/ALTADENA Drunk Driver Plows Into Pg. 4Pharmacy AROUND SGV Pg. 5 ARCADIA NEWS Pg. 6 MONROVIA/DUARTE Pg.7 EDUCATION & YOUTH Pg. 8 FOOD & DRINK Pg. 9 BEST FRIENDS Pg. 10 HEALTHY LIFESTYLES Pg. 11 THE GOOD LIFE Pg. 12 BUSINESS NEWS Pg. 11 HOMES & PROPERTY WORLD AROUND US Pg. 13 LEFT TURN/RIGHT TURN/OPINION Pg. 14 MORE NEWS AND FEATURES IN SECTION B ELECTION COVERAGE On April 8, 2014, voters in Sierra Madre will go to the polls and select three people from a field of four to sit on the City Council. They will also vote on a local ballot measure to extend the city’s current User Utility Tax Ordinance. The Mountain Views News will provide our readers with comprehensive coverage of this election. Each week, as we have done in the past, we will profile the candidates and give each of the candidates the opportunity to introduce themselves to our readers by answering the following questions: 1. Why are you running for City Council? 2. What are you going to do for Sierra Madre? 3. How do you plan on accomplishing your goals? (All candidates are being asked to answer the same questions and their answers will be published unedited.) The paper will also review the pros and cons of the proposed User Utility Tax Ordinance. The schedule will be as follows: February 22nd The Pros and Cons of Measure UUT March 1st Candidate Denise Delmar March 8th Candidate Rachelle Arizmendi March 15th Candidate Noah Green March 22nd Candidate Eugene Goss March 29th Candidate Forum Review It is our sincere hope that each candidate will submit their answers so that we can share them with our readers. A separate letter has been sent to each candidate asking them to participate. In addition to the candidate spotlights, we will attempt to cover the various forums sponsored by local organizations. Where possible, the unedited video of these forums will be broadcast on the papers website. Our reporting on this election will be as fair and objective as possible. However, please keep in mind that our columnists are always free to share their opinions. Their opinions are their opinions and may or may not reflect the position of the paper. This is true in all things, not just this election. We will also provide for you the calendar of important dates regarding the election. It is our goal to do whatever we can to help you make an informed decision on April 8, 2014. Susan Henderson, Publisher and Editor WANT YOUR LOCAL NEWS AS IT HAPPENS? Follow us on Facebook www.facebook.com/ mountainviewsnews or Twitter @mtnviewsnews or check in at www.mtnviewsnews.com for the latest breaking news! Candidate Information DENISE DELMAR 1. Why are you running forCity Council? I have over 30 years of community leadership experience serving communities in the San Francisco Bay Area. I have served as PTA President, PTA Council President, and volunteered at the state level organizing campaigns for school funding. I was selected to serve on a City Wide Task Force Against Violence, and was on the founding Board of Directors for a joint City and School District pre-school and after school program. Shortly after my move to Sierra Madre, I put my leadership skills to the test, serving as the Chair of the Sierra Madre General Plan Update Steering Committee (GPUSC) for 4 years. This opportunity to hear the various concerns of many residents and business owners during the GPU process, the success of the committee, as well as my past leadership experience brought me to the decision to run for City Council in 2014. 2. What are you going to do forSierra Madre? As a City Council member, I will work in collaboration with the other City Council members to ensure our City is efficient, effective and utilizing all its resources to the fullest potential. I will ensure all development projects brought before the City Council adheres to the General Plan, especially as they apply to housing mass, neighborhood compatibility, and protection of our hillsides and wildlife. I will continue my advocacy to limit development until our dire water situation has stabilized and reached a capacity to take on more customers. I will reach out to our residents and community organizations soliciting suggestions to enhance community engagement. 3. How do you plan on accomplishing your goals? My past experience serving on avariety of boards and committees hastaught me the only way to get anything accomplished is to be willing to roll up your sleeves and do some hard work, do your homework, listen to others and respect the opinions of those you servewith and those you serve. As a Human Resources Professional, with an emphasis in Benefits andCompensation, I will use my knowledgeand skills to help City officials makeinformed decisions, so we can offer afair compensation to our employees, aswell as continue to provide services toour residents. I will continue to attend PlanningCommission meetings, to gaininformation and educate myself on upcoming development projects. As an elected official, I would have to step down from the Preserve MaterDolorosa Steering Committee, but would continue to stay informed as they work together with MaterDolorosa representatives to find a win- win situation for all. Read The Paper Online At: www.mtnviewsnews.com | |||||||||||||||||||||
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Mountain Views News 80 W. Sierra Madre Blvd. #327 Sierra Madre, Ca. 91024 Office: 626.355.2737 Fax: 626.604.4548 www.mtnviewsnews.com |