Far West

The Reno, Nev., Redevelopment Agency's financial woes had little impact on Moody's Investors Service's decision to downgrade the city of Reno's general obligation limited-tax bonds a notch to Aa3 from Aa2 and give them a negative outlook, analysts said.

The municipal securities market, still reeling from a handful of proposals President Obama and others offered during the last 14 months that pose the greatest threat to tax-exemption since 1986, may have a year's respite due to partisan bickering in Congress and the forthcoming presidential election, according to tax experts.

In the realm of muni enforcement, the new year will start with the most high-profile federal criminal trial since the mid-1990s, stemming from the Justice Department's extensive probe of bid-rigging.

Past missteps by the Los Angeles Department of Water and Power continue to haunt the agency as it tries to push forward on a five-year, $6.1 billion capital plan needed to replace aging infrastructure and meet state and federal environmental mandates.

Washington maintained its AA-plus rating from Fitch Ratings despite its difficulty in increasing revenue because residents pay no income tax, according to a report from the agency.

The city of Eugene was among the 100 investors that put money into a Washington regional events center that defaulted on $41.8 million of bonds in early December, according to a published report.

The U.S. Department of Housing and Urban Development has launched an investigation into the Los Angeles Housing Authority, according to published reports.

The San Diego Association of Governments approved the $345 million purchase of a bankrupt toll road from a private operator at its Dec. 16 board meeting.

The rating on $481.6 million of general obligation bonds issued by Palomar Pomerado Health was dropped one notch to A-plus on Dec. 23.

The California Supreme Court upheld a law that would allow the dissolution of the state's redevelopment agencies, but struck down a bill that would have allowed the agencies to remain in business if they were willing to pay a percentage of their income into a fund to help pay the state's education costs.