Written by John Starkey
Moody’s Investors Services and Standard & Poor’s (S&P) affirmed Irving’s AAA ratings of the city’s General Obligation Refunding and Improvement Bonds, Series 2012, and all outstanding General Obligation Debt. In addition, the agencies affirmed AA ratings for the city’s Water/Sewer System New Lien Revenue and Refunding Bonds, Series 2012, and all other existing Water/Sewer System Debt.
These strong ratings allow the City to save money by receiving the lowest possible interest rates when selling bonds for capital improvement projects to support city streets, libraries, parks and overall economic development.
“Strong financial management during the economic downturn enabled us to reduce costs while improving services. The measures we took, a disciplined financial approach, and adherence to a long-term strategic plan, helped retain our top ratings,” said Irving City Manager Tommy Gonzalez.
Moody’s Investors Services and S&P update the city’s bond ratings on an annual basis. Irving has earned top ratings for its General Obligation Bonds every year since 1996—a claim that only can be made by a handful of cities nationwide.
Irving’s continued AAA General Obligation Bond ratings are attributed to the City’s large corporate tax base, strong financial management policies, formal investment and reserve policies, and strong general fund reserves. The city’s AA ratings for Water/Sewer Bonds are attributed to competitive combined utility rates and its solid financial position.
S&P specifically cited the City’s strong management practices, as well as its use of extensive planning and analysis to devise revenue and expenditure assumptions based on historical measurements. The willingness of City management to make intra-year corrections to improve budget gaps was also a factor in the superior rating.
Source: Cooksey Communications