Financial storm clouds remain on the horizon for the Pleasant Hill Recreation and Park District (PHRPD), established in 1951. Following review of the District’s finances, including June 30, 2012 financial statements, a February 8, 2013 report from Fitch Ratings affirmed an “A” rating and “negative rating outlook” for $20 million in District general obligation (GO) bonds approved by voters in 2009.
The report states:
“ . . . The Negative Outlook reflects Fitch’s concern regarding the potential for a return to deficit operations, due to cost pressures and constraints on raising revenue. Fitch also notes the potential for increased credit pressure related to the completion of a major capital program and operation of new facilities . . . Positive operating margins for recreational programs housed in these new facilities would benefit the district’s finances, but a lack of reserves leaves little margin for error . . . the district’s finances remain vulnerable despite a small operating surplus in fiscal [year] 2012 . . . . “
Read Fitch’s full report here.
The Pleasant Hill Recreation and Park District Board of Directors meets twice monthly on the 2nd and 4th Thursdays at the District Administration offices located at 147 Gregory Lane in Pleasant Hill.
This article cross-posted at WatchDogWire.com.