Park Madera Fund Deficit Concerns Money-Watchers

While the Town Council and Corte Madera residents might be excited by signs of progress at the Park Madera plaza, it seems market watchers aren't as enthusiastic.

Fitch Ratings cited current and projected deficits in the Park Madera Fund when it downgraded $9.8 million in certificates of participation, taxable series 2006, to 'BBB+' from 'A.' The move was made based on the fiscal 2010 audit.

Also the rating outlook was downgraded to negative from stable.

According to a press release from Fitch Ratings: "The fiscal 2010 audit recorded a negative fund balance of $1.7 million in the Park Madera Fund, an enterprise fund established by the town to account for the business-like operations of the town-owned strip mall. Ultimately intended to provide sufficient net revenue to pay annual debt service on the COPs that financed the mall's acquisition, the fund's operating deficit was $339,000 in fiscal 2010 and is projected to widen to $361,000 in fiscal 2011. The town points to improvements in lease terms starting in fiscal 2013 which should help close the gap somewhat. However, Fitch remains concerned about the additional budgetary pressure on the general fund resulting from the deficit."

See the full press release here.

Corte Madera Town Manager Dave Bracken during Tuesday's Town Council meeting reported a drop in last month's sales tax revenue, but said it's not as bad as it seems since the MINI of Marin dealership had been open for just a couple weeks in that time. Bracken suggested things will be looking up for Corte Madera's revenue in the near future.

He also reported the initial goals for public fundraising for the Town Plaza project have been met and momentum is growing for the project.