The improved rating reflects the City’s long-term strategy of improved financial management policies and procedures.
Higher credit ratings are associated with lower risk of default and result in lower interest rates on municipal bonds (the money cities borrow for capital projects). The rating improvement is a favorable change for City tax and rate payers.
According to the S&P Global RatingsDirect® summary dated April 25, 2018, “The change is based on the formalization and implementation of several comprehensive management practices and policies.” The report continues to outline key factors in the rating including “very strong management, with ‘strong’ financial policies and practices, strong budgetary performance, very strong budgetary flexibility and very strong liquidity” among others. The S&P assessment of City management was raised to “very strong” from the previous “adequate” which was based on the “formalization of a long-term financial plan and reporting practices, as well as comprehensive updates to the long-term capital improvement plan and debt management policy.”
To read the report, click here.