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PASADENA CALIF. $27.2 MILLION CERTIFICATES OF PARTICIPATION RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 PASADENA CALIF. $27.2 MILLION CERTIFICATES OF PARTICIPATION
 RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
 NEW YORK, June 29 /PRNewswire/ -- Pasadena, Calif.'s $27.2 million 1992 Certificates of Participation (Refunding and Capital Project) are rated 'A+' by Fitch. The certificates are expected by negotiation through a syndicate led by The First Boston Corp., on or about July 8. The credit trend is stable.
 Financial management is strong and Pasadena continues to maintain general fund reserves for contingencies representing about 10 percent of operating expenditures. The city's $123 million general budget for 1993 has been adopted essentially as proposed, balanced primarily through expenditure actions.
 To close a large budget gap, the state could adopt measures that could affect municipal finances. Several plans that have been proposed in the state legislature would result in some city revenue loses, but would also provide municipalities with additional revenue raising flexibility. Pasadena is developing contingency expenditure and revenue plans to address any adverse state budgetary actions.
 Debt issuance has slowed in recent years as the city has completed various major projects to address the past deferral of capital requirements. Debt levels are in the upper-moderate range, but remain affordable given above-average income levels and light general issuance projections. Including the bonds now offered for sale, overall debt per capita is $1,871 and overall debt as a percent of the large market value of property is 3.5 percent.
 The growth limitation enacted by voter referendum in 1989 will be put on November's ballot for repeal, with the goal of replacing it with a growth management plan that targets development. As a result of several projects exempt from the limitation, a significant amount of economic development has occurred over the past several years, with various large projects recently completed or nearing completion. Despite the national recession, Pasadena's diverse economy has shown relative stability. The recession has had more of an impact on slowing additional development than the limitation, as development capacity allowed under the limit has expanded over the last two years. As a desirable place to locate business and reside, the city anticipates development to increase as the economy improves.
 Lease provisions are strong. The city's covenant to budget and appropriate the rental payments and the trustee remedy upon default to repossess and re-let are positive credit considerations. Yesterday's earthquakes reportedly did not result in any damage to the leased facilities nor appreciable damage to property citywide.
 -0- 6/29/92
 /CONTACT: Stewart Simon of Fitch, 212-908-0508/ CO: ST: California IN: SU: RTG


LR -- NY076 -- 4899 06/29/92 16:55 EDT
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Publication:PR Newswire
Date:Jun 29, 1992
Words:429
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