The following press release by the City of Georgetown
Rating agency Standard and Poor’s affirmed the City’s tax-supported AAA bond rating for the second year in a row. The City had previously maintained a AA+ rating since 2009 and was upgraded to a AAA in 2024.
The bond rating means the City can sell debt for major expenses, including roads, facilities, and vehicles, at lower interest rates. The City issued $104 million on bonds April 22, with the affirmed bond rating resulting in a savings of more than $800,000. AAA is the highest credit rating S&P assigns to debt issuer’s bonds. Georgetown is in the 10 percent of local governments that earn S&P’s highest rating.
“Georgetown’s bond rating is a testament to our commitment to sound financial management during a period of rapid growth,” Chief Financial Officer Leigh Wallace said. “This demonstrates our dedication to transparency, accountability, and fiscal responsibility, so we can continue to build upon Georgetown’s already bright future.”
The proceeds from the April 22 debt sale will fund voter-approved street, sidewalk, intersection, and facility improvements. Proceeds will also be used to fund public safety vehicles and equipment upgrades, park and trail improvements, and a regional animal shelter expansion. The proceeds also include self-supporting projects toward the Georgetown Transportation Enhancement Corporation road improvements and stormwater maintenance.
The factors cited in Georgetown’s rating include an established trend of fiscal health and manageable debt burden; a positive general fund financial performance with consistent surpluses and maintenance of reserves above 35 percent of revenues; exceptional planning exhibited by City’s management team; and aggressive program to mitigate cyber security risk.
Independent rating services such as S&P provide these evaluations each year. This rating is used by the bond market to help bond buyers understand the creditworthiness of a city’s debt. The rating indicates the financial strength of a city and its ability to pay off debt in a timely fashion. Strong ratings allow cities to borrow money at reduced costs because there is less risk associated with the loan.
Comments