SAN DIEGO - If the fourth in a series of long-delayed audits of San Diego's finances is completed by the end of January as anticipated, the city should be able to restore its suspended credit rating and re-access the public bond markets by April, Mayor Jerry Sanders said today.

Since March, San Diego has issued audits for 2003, 2004 and 2005.

That was supposed to be enough for Standard & Poor's, one of the nation's three top credit reporting agencies, to reinstate San Diego's rating, which it suspended after disclosure that the city failed to accurately disclose to potential investors the condition of its finances.

Standard & Poor's now wants the 2006 audit before it restores San Diego's credit rating. The two other rating agencies - Fitch Ratings and Moody's Investors Service - also want the 2006 audit.

"This along with the other three CAFRs, (Comprehensive Annual Financial Report), which will have already been received and reviewed by those rating agencies should bring closure to this chapter in the city's history and reopen access to the public capital markets," Sanders said.

He said any delays will have an "increasingly negative impact on our ability to finance critical improvements at reasonable borrowing costs," directing his comments at City Attorney Michael Aguirre.

"The city attorney's cooperation will be critical to the fulfillment of this goal," the mayor said.

Sanders said Aguirre's "obstructionism" resulted in an eight-week delay in the release of the city's 2005 audit.

Sanders' timeline for regaining access to the public bond markets has slipped a number of times over the past year.

Because it is cheaper to borrow on the public bond market, rather than through private financing, San Diego has delayed making more than $1 billion in upgrades to its infrastructure.

In the meantime, the city is pursuing short-term, private loans.

"While I think it's prudent that we utilize short-term private financing vehicles to fund critical infrastructure improvements, access to the public markets will allow the city to fund major capital improvements and meet financial funding obligations in a more cost-efficient manner," Sanders said.

The mayor said he will pursue a $120 million private loan to continue making improvements to San Diego's water system through next June.

He also plans to seek $100 million in private loans to fund deferred maintenance, for things like roof repairs at municipal properties and improvements to streets and sidewalks.

Already authorized is $224 million in private financing to retire old debt and to make wastewater system upgrades through next fall.