June 27, 2009

Standard & Poor’s has increased the city’s bond rating from an A+ to AA-, the highest rating the city has ever achieved.The upgrade, announced Friday, is based on the city’s sound financial management and practices, as well as its strong local economy. The new rating will not lower interest rates on the city’s current debt, but will significantly reduce future bonds, including a $46 million bond project currently in the works to upgrade the city’s wastewater treatment plant.

“In the midst of an economic crisis when entities are being down-graded, the fact that we are being upgraded is very significant,” City Manager Mike West said.S&P’s rating system uses letter grades ranging from AAA, the highest, to R, the lowest. The AA rating means the city has “excellent financial security” and bonds issued by the city are considered “highly safe.” A plus or minus within a category shows relative standing within a category without suggesting upgrades or downgrades.