Calabasas earns high municipal credit rating

Give Calabasas credit—its credit rating has improved, finance officials say.

“To put this in perspective, the city’s overall credit rating is only two steps away from the highest possible credit rating,” said Gary Lysik, Calabasas chief financial officer. “The city’s bonds are considered to possess many favorable investment attributes, including security to principal and interest.

Althought Calabasas bonds are currently considered investment grade, the city has had its share of financial problems in the past. In 2003, officials questioned an unexpected $3 million drop in the city’s general fund.

And Mayor Barry Groveman, after he was elected to the city council that same year, abstained from voting on the city’s warrant (checkbook) register because the bookkeeping was reportedly so muddled that he and other council members couldn’t distinguish legitimate expenses from potentially fraudulent ones.

The city also was mired with mounting legal expenses in the fight against the Ahmanson Ranch development.

But Groveman said the city’s financial operations have improved drastically over the past two years.

“As a result of the strong financial condition of the city, a much-improved system of financial reporting and other reforms put in place over the past two and a half years, Calabasas’ credit rating has gone up,” Groveman said.

Because of the improved rating, Calabasas will be able to obtain debt more cheaply, Lysik said.

“That’s especially good news, given the city’s intention to issue certificates of participation to help pay for the construction of the city’s new civic center early next year,” Lysik said.

Several years ago the city council created a chief financial officer position and hired Lysik for the job.

“Major efforts were implemented by the new CFO to improve business decisions and fiscal efficiency, identify waste, modernize our accounting systems, and invest in higher yield, more prudent investments,” Groveman said.

Two years ago the council also replaced the city manager and the city attorney. Groveman gives City Manager Tony Coroalles and City Attorney Michael Colantuono much of the credit for the city’s improved financial standing.

“According to the chief financial officer’s report, at least $1 million has been saved as a result of numerous actions taken over the past two and a half years, which has both increased revenues and led to significant savings to the general fund,” Groveman said.

Groveman said the better credit rating will help the city perform a variety of municpal duties such as infrastructure im

provement, traffic reductionschool bus funding and open space acquisition.