San Diego to reenter muni bond market
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San Diego, which earned the moniker “Enron by the Sea” after submitting false financial statements for bond offerings, aims to reenter the municipal debt market in April.
That would lower borrowing costs during a period of financial difficulty for the city, Mayor Jerry Sanders said at a news conference Monday.
San Diego has been out of the public debt market since early 2004, when a deficit of more than $1 billion in the city’s employee pension fund became apparent.
The revelation prompted two bond-rating firms to downgrade the city’s debt to junk levels.
Six trustees of the pension fund face felony conflict-of-interest charges for allegedly brokering deals between the City Council and the city pension fund to reduce the city’s contribution to the retirement system while increasing benefits for city employees, including the trustees themselves.
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