Broward - South

HOLLYWOOD

Hollywood’s financial outlook brightens

 

cteproff@MiamiHerald.com

Over the past two years Hollywood has pinched pennies, negotiated union contracts and increased its revenues to help put the city in better financial standing.

This week, FitchRatings, a global rating company, recognized the city’s efforts by raising the city’s financial outlook from negative to stable, which means the city’s finances are improving.

“It sends the message to investors that city’s finances are on a more positive trend,” said the city’s Finance Director Matthew Lalla.

Lalla said that the stable outlook combined with the city building up its reserves means it can once again enter the bond market and borrow money at a lower rate.

In 2011, after the city realized it had a more than $10 million deficit, the rating company downgraded it bond rating from AA to a single A. A few months later the company added the negative outlook.

“That tells investors that we were a high risk,” Lalla said.

He said even though the outlook was changed, it will still take a few years for the bond rating to increase.

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