City receives AA+ credit rating for Civic Campus bonds

76
0

Standard & Poor’s Global Ratings (S&P) has assigned its ‘AA+’ long-term rating to the city’s 2018 Civic Campus bonds, the second highest rating S&P provides.

Bond proceeds will finance the construction of a new city hall and the police station’s expansion.

In a report issued on May 8, 2018, S&P assigned the city a ‘AA+’ rating with a stable outlook, noting that the city has sound financial policies and practices, including quarterly financial performance reviews and a six-year forecasting model. The city’s rating by Standard & Poor’s indicates the city is a quality borrower with very strong capacity to meet its financial commitments.

The S&P report commends the city for its strong budgetary performance with operating surpluses in the general fund and at the total governmental fund level. The report states, “The stable outlook reflects our view of Mountlake Terrace’s growing local economy with access and participation in the greater Seattle-Tacoma-Bellevue metropolitan statistical area (MSA). The outlook further reflects our expectation that the city’s strong budgetary performance and budgetary flexibility will continue in the near term, supported by what we consider strong financial management policies and practices.”

The S&P Analyst told city officials that the city stands out on management, and the fact that the city monitors itself on a quarterly basis is significant. “Overall Mountlake Terrace’s assessed value rose 12.7 percent over the past year to $2.9 billion in 2018, reflecting the growing local economy and consistent with regional economic trends. Officials anticipate continued growth in coming years as commercial and residential development within the city continues.”

“I would like to congratulate the community, City Council and staff on this achievement,” said City Manager Scott Hugill. “The ‘AA+’ bond rating will translate into lower financing costs by attracting a broader range of investors. This rating is also a positive reflection of the City Council’s effectiveness in managing the community’s financial resources to ensure we live within our means.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here