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# City Hall: Dollars & sense
- URL: https://www.smdp.com/city-hall-dollars-sense-20040510/
- Published: 2004-05-10T15:00:00.000Z
- Updated: 2026-10-23T04:17:24.000Z
- Author: John Wood
- Tags: Government & Politics, Santa Monica, #archive-import

*A month-long series examining Santa Monica City Hall finances City Hall keeps bond rating high in trying times*

While it may be lacking in a surplus of cash, at least City Hall has good credit.

Santa Monica is the only city in California that has a triple-A bond rating from all three of the major rating agencies.

So when officials from City Hall need money and decide to issue a bond, they can be confident investors will be interested. The triple-A rating also means low interest rates for City Hall.

This will be the third consecutive year of budget deficits within City Hall — totaling $28 million. This year, city officials must close a $4 million deficit. City Hall in 2002 faced an $8 million shortfall, and was able to cut $2.2 million in operating costs and $6.6 million in capital improvement projects. In 2003, City Hall plugged a $16 million shortfall by cutting expenses and increasing revenues. Thirty-one positions were eliminated with City Hall as part of the cuts.

But a good bond rating helps. It’s the result of prudent forecasting and conservative budgeting, said Steve Stark, the city’s finance director.

In evaluating a bond, raters look at four indicators — the city’s overall economy, its debt, financial history, and the philosophy of its management team and policy makers.

*Originally published in the Santa Monica Daily Press print edition on May 10, 2004.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/051004.pdf?ref=smdp.com)