Wednesday, August 11, 2010

Bell salary scandal: Bond rating firm downgrades city's bonds to junk status - latimes.com

Bell salary scandal: Bond rating firm downgrades city's bonds to junk status - latimes.com

"It's adding insult to injury," said Tom Dresslar, a spokesman for State Treasurer Bill Lockyer. "First, folks in [Bell's] upper management were making outrageous salaries and pulling in outrageous benefits. Now taxpayers will have to pay more money when the city wants to go to market to sell bonds. They've already been shafted by city leaders down there; now they're taking another hit in terms of higher borrowing costs."

Bell's credit problems are the latest dose of bad news for residents of the working-class city of about 39,000 since The Times revealed last month that Rizzo was making nearly $800,000 a year. The newspaper has since reported his total compensation was more than $1.5 million and that other top officials, who also have resigned, were making as much as $845,000a year.

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