On Tuesday, June 14, 2022, the City of Lake Elsinore (the “City”) successfully sold $23.7 million of lease revenue bonds, generating $24.1 million in proceeds. The bonds are issued primarily to finance a new City Hall facility on a site adjacent to the existing city hall office at 130 South Main Street, financed over a 30-years at a true interest cost of 4.57%. The new City Hall will be a three-
story structure of approximately 38,000 square feet which will house City Council chambers, administrative office space, multi-purpose and retail space, and outdoor amenities with connection to the existing City Hall building. Thank you for supporting the City’s Finance Team and City Staff on a significant milestone for the City’s future and important project in the historic downtown.
Shortly before the sale, the independent bond-rating agency, Standard & Poor’s, raised the City’s general fund credit rating to ‘A+,’ a one-notch improvement from the City’s existing ‘A’ rating. The improved rating also applies to the City’s 2016 lease revenue bonds, which were issued primarily to finance Launch Pointe Recreation Destination and RV Park. As rationale for the upgrade, Standard & Poor’s specifically cited the City’s “rapid economic development,” “strong financial management policies and practices,” and “maintenance of a very strong general fund reserve position despite temporary pandemic-related impacts.” As far as the City’s outlook is concerned, Standard & Poor’s believes the City is “well-positioned to absorb the anticipated future growth without material deterioration in its favorable financing position, with additional support from a recent voter-approved tax measure.”
