Sanders Says Another City Audit to be Completed Soon
Friday, January 4, 2008
San Diego mayor Jerry Sanders says the city still has a lot to do to fix the weak financial controls that led to it being banned from the bond market three years ago. But the good news is that another long delayed city audit will soon be done. KPBS reporter Alison St John has more.
It’s a bit like déjà vu. Sanders has announced he expects another city audit to be complete very soon. The 2003, 2004 and 2005 audits all had to be redone to satisfy the credit rating agencies, which pulled the city’s credit rating after a billion dollar pension deficit was revealed.
Sanders: We expect the 2006 audit will be out within about six to eight weeks. We have been advised by the financial markets at least privately that our credit ratings will probably be restored at that point and we can go back out in the credit markets.
Being allowed back to the bond market would save the city millions of dollars a year because it could borrow money at lower interest rates.
But Sander says close scrutiny of the way the city conducts its financial business has uncovered even more weaknesses than previously thought. He says the city’s identified dozens more changes that need to be made to restore its financial credibility.
Alison St John, KPBS news.
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