The outlook change to stable from negative on Redlands, Calif.'s GO bonds reflects the city's higher than expected fiscal 2003 revenues and revised estimated general fund results for fiscal 2003, including an anticipated unreserved fund balance of $6.1 million or 17% of expenditures versus prior estimates of $327,000 (0.9%). The 'A' rating on the bonds is affirmed and reflects the following credit factors: A resilient, strengthening economy with a strongly growing tax base; Slightly above average income indicators and low unemployment; and Moderate overall debt levels. Mitigating factors to the rating include moderate debt levels, an expected drop in the fiscal 2004 unreserved fund balance due to contracted salary increases, and the possible elimination of the Motor Vehicle License Fee
