West Hollywood remains in a “very strong financial position,” according to Fitch Ratings, which recently reviewed the City’s bonds and overall financial operations including its lease revenue bonds (LRBs) series 2009A, 2009B, and series 2013 at ‘AA+’ and implied general obligation bonds (GOs) at ‘AAA.’

According to the recent Fitch Ratings report, the city’s financial profile is very strong. General fund revenues are well diversified by source and have been rising steadily since the recession.

In fiscal year 2014, the unrestricted general fund balance increased to an extremely high $93.1 million (118 percent of spending). For the end of fiscal year 2015, the city is projecting that it will add an additional $1 million to $2 million to its total general fund balance primarily as a result of revenues which came in higher than budget, due to the improving economy. These enhanced revenues will allow the city to add to its fund balance while also transferring $4.2 million to an irrevocable CalPERS OPEB (California Public Employees’ Retirement System Other Post-Employment Benefits) trust.

Fitch cited West Hollywood’s strong financial operations, stable local economy, resilient tax base and satisfactory debt profile as key drivers in its exceptional ratings.

West Hollywood recovered more quickly from the 2008 recession than most cities in the nation. During the past few years, the City’s revenues have steadily increased and have now surpassed pre-recession revenue levels by 12 percent.

The fiscal year 2014-2015 budget was approximately $112 million, which included $3.8 million in capital project expenditures. For 20 consecutive years, the city has been awarded with a Certificate of Achievement for Excellence in Financial Reporting and an Award of Financial Reporting Achievement by the Government Finance Officers Association (GFOA) for its comprehensive annual financial report (CAFR), which is a set of detailed financial statements accompanied by a thorough presentation of the City’s financial condition.

For more information about West Hollywood’s ratings or financial operations, contact David Wilson, director of finance and technology services, at (323)848-6524.