SLO refinancing its water fund debt

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• City of SLO to refinance nearly $5.5 million of water revenue bonds

  City of SLO to refinance nearly $5.5 million of water revenue bonds

  Taking advantage of lower interest rates, the city of San Luis Obispo is set to sell $5.48 million of water revenue bonds Wednesday that would replace a 2002 bond refinancing.

  That would save the city’s water fund about $50,000 a year until the bonds mature in 2023, city Utilities Director Carrie Mattingly said in a news release.

  Called a re-funding in the municipal bond market, Wednesday’s issue replaces remaining principal of a $9.485 million bond sale from 2002, according to the issue’s preliminary official statement by Irvine-based Fieldman, Rolapp & Associates, the city’s financial adviser for the sale.

• SLO County retains high credit rating

  SLO County retains high credit rating

  Citing strong finances, a stable economy and tax base, and relatively low debts, Wall Street agency Fitch Ratings has affirmed its second-highest credit rating of San Luis Obispo County as it plans to refinance some of its debt to take advantage of lower interest rates.

  Fitch maintained the county’s general credit at AA-plus, considered a high grade rating in the municipal bond market, according to a report by the New York-based agency.

  Credit ratings are important in the bond market and for companies and governments borrowing money because they affect interest rates. Higher ratings mean lower interest.

• Arroyo Grande mulls being a charter city

  Arroyo Grande mulls being a charter city

  The Arroyo Grande City Council considered a slew of ideas this week, including becoming a charter city and dipping into sales tax funds normally earmarked for local projects in order to reduce an estimated $900,000 shortfall in next fiscal year’s budget.

  City employees, who last year agreed to a combination of furlough days and increased pension costs to save the city about $410,000, may be asked to make up the difference if some of the ideas don’t bridge the gap.

  City officials had anticipated a $656,000 shortfall for the 2012-13 fiscal year, which starts July 1.

• Water and public safety on tap for A.G. council

  Water and public safety on tap for A.G. council

  Arroyo Grande voters could have a chance to weigh in on two issues — water and public safety — in the June election.

  The Arroyo Grande City Council on Tuesday is scheduled to consider placing two measures on the June ballot.

  One would ask voters whether they authorize the city to purchase state water; the other seeks to sell $6.7 million in bonds to finance construction of a new police station.

• Survey shows support for sales tax extension in San Luis Obispo

  Survey shows support for sales tax extension in San Luis Obispo

  San Luis Obispo voters remain in favor of extending an added sales tax to pay for essential city services, according to a recent survey commissioned by the city, but support for it has declined over the past year.

  Of the local registered voters asked in a telephone survey, 59 percent said they would likely support renewing Measure Y, the city’s half-cent added sales tax approved by San Luis Obispo voters in 2006. In 2010, a similar survey found that 64 percent of registered voters polled said they would vote yes.

  “The prospects for renewing Measure Y are good, but definitive support for Measure Y has fallen since May 2010,” according to a report summarizing the survey.