Written by The Business Journal Staff
After financial challenges in 2010 that led to a missed bond payment and talk of disincorporation, Chowchilla’s Successor Agency to the Redevelopment Agency has rebounded with an A bond rating for its uninsured bonds.
“The confidence shown by Standard and Poor’s is directly attributable to a number of key activities taking place in Chowchilla,” according to Brian Haddix, Chowchilla’s city administrator.
Had said that Chowchilla has demonstrated that it has a solid budget with a general fund reserve of 28 percent; its most recent outside auditor report came back with no findings, meaning a clean bill of health financially; and its revenues are strong enough to once again offer raises to its bargaining units while fully staffing key departments like public safety, public works and finance.
S & P also took note of the fact that Chowchilla has a spending plan for how it allocates money and that the city is seeing an increase in economic activity attributable to incentives put in place to attract new housing, retail and industrial development, Haddix said.
“Chowchilla is definitely on the upswing as new retail stores open up and jobs are created,” said Chowchilla Mayor Waseem Ahmed. “S & P’s action reflects what we are seeing on the ground.”
“This refinanced bond will save the Successor Agency $2 million and the City directly $377,000 over the life of the bond,” Haddix said. “This is money that can be used to enhance services to the community.”