| Another
measure of a community’s financial soundness is its bond rating.
During the period April through June, three major rating institutions
(Moody’s, Standard & Poor’s and Fitch) evaluated
the City’s financial management, economic conditions and administrative
practices. Based on their evaluations, the following ratings were
achieved:
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General
Obligation |
|
Water
& Sewer |
| |
|
Insured |
Underlying |
|
Insured |
Underlying |
| Agency |
|
|
|
|
|
|
|
|
|
|
|
|
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| Moody’s |
|
Aaa |
A1 |
|
Aaa |
A1 |
| Fitch |
|
AAA |
A+ |
|
AAA |
A+ |
| Standards
& Poor’s |
|
AAA |
A+ |
|
AAA |
A |
The general obligation underlying ratings were all upgrades while
the water & sewer underlying ratings represented first time,
stand alone ratings for the City’s utility system.
The insured rating is based on the credit worthiness of the company
insuring the bonds, whereas an underlying rating is based upon the
credit worthiness of the security or issuer, which is actually pledged
for the repayment of the bonds.
Comments received from the rating agencies are highlighted below.
- Strong tax-base growth due to recent completion of new bridges
and roadways in City to surrounding business areas and planned
completion of additional transportation projects
- Prudent financial management policies resulting in sound financial
position
- Multi-year forecasting, asset improvement program, monthly
fund reporting and budgeting of contingencies
- Maintaining healthy and growing reserve levels
- Financial flexibility including property tax rate only 56.8%
of 10 mill limit, communication service tax not levied at limit,
and public service tax yet to be implemented
- Manageable debt levels reflecting growing taxable resources
and use of revenue bonds to support capital plan
- Principal retirement above average as almost 70% of principal
(excluding enterprise revenue and special assessment bonds) planned
to be paid within next ten years
- Low unemployment levels
- Implementation of GASB 34 one year earlier than required
- Conservative budgeting practices
- Reduction of delinquent special assessment accounts and decision
to put assessment on the tax bill
- Growth-related utility capital plan primarily financed through
special assessments
- Growing utility service area
- Sufficient existing capacity and strategic plan for utility
expansion
- No regulatory nor environmental issues outstanding
- Well positioned to finance future infrastructure needs
Chart
of the Bond Paying Agent’s (PDF)
Bond
Paying Agent’s Contact List (PDF)
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