[env-trinity] Trinity credit rating up: Good news comes as more employees face layoffs

[Josh Allen]

Trinity credit rating up


Good news comes as more employees face layoffs


http://redding.com/news/2007/aug/22/trinity-credit-rating-up/  

By Kimberly Ross <http://redding.com/staff/kimberly-ross/>  (Contact
<http://redding.com/staff/kimberly-ross/contact/> )
Wednesday, August 22, 2007 

Trinity County is celebrating a major long-term financial gain for its
credit rating this week, while simultaneously feeling the pinch from
laying off three more employees.

The county's total layoffs climbed from four to seven this month as it
attempts to fill an anticipated $1.3 million budget gap.

The latest layoff notices, made in the past week, went to a maintenance
worker, an account tech, and a seasonal parks and grounds employee. All
worked in the building and grounds department, County Administrator
Larry Layton said.

In addition, five full-time employees in that section were cut to part
time and a temporary part-time worker was let go, county personnel
analyst Monica Stygar said.

Department heads could call for more layoffs next month, when the county
holds budget hearings Sept. 5, 6 and 7.

Planning Director Susan Price said she must cut another $60,000 from her
department's budget. That could be achieved through one potential
retirement in January and one or more layoffs this fiscal year, she
said.

But Trinity County's officials are counting victories, too.

News of an upgrade to the county's bond rating -- from junk-bond status
to stable -- means the county will get better loan rates and more
financial entities will be willing to lend. Like most jurisdictions, the
county takes annual loans to pay its bills while waiting for property
taxes to be paid, auditor-controller David Nelson said.

The improvement rating reverses a financial downturn in 2005, when the
county borrowed to avoid bankruptcy and its bond rate plummeted, Nelson
said.

Usually, it takes public agencies five to 10 years to recover, "but we
made it in two, so we're really happy about it," Nelson said. "A lot of
private organizations don't ever recover."

Fitch Ratings, a global bond rating agency, cited the transfer of
Trinity Hospital to a newly formed, voter-approved health services
district as one reason for the upgrade, Nelson said. The new rating will
mainly help in fiscal year 2008-2009 and later, Nelson said, and can't
undo layoffs made this year.

"The county is really just trying to operate under the revenue that we
receive," he said.

Also, the bond rate upgrade could allow the county to refinance some of
its long-term debt and free up some general fund money, County
Supervisor Jeff Morris said.

"Just like a personal credit score, it increases your ability to do
financing at a good credit rate," he said.

Tuesday, the board discussed county administrator Layton's November
retirement, Morris said. Members hope to advertise the position and find
a replacement who would start work by Jan. 1, Morris said.

Between administrators, County Clerk-recorder Dero Forslund will serve
as interim chief.

Reporter Kimberly Ross can be reached at 225-8339 or at
kross at redding.com.

 

 

 

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