Reaffirmation of Triple-A Bond Rating Will Save Taxpayers Money
Two rating agencies recently reaffirmed the city’s triple-A bond rating and expressed confidence in Rockville’s financial outlook.
Triple-A is the highest possible rating and saves Rockville taxpayers money by allowing the city to borrow at the lowest possible interest rates.
In awarding the rating, the agencies showed confidence in Rockville’s ability to meet its financial obligations, cited the city’s conservative fiscal management, strong policies and practices, ample reserve levels and stable tax base.
Standard & Poor’s said its stable outlook for the city’s finances reflected a “view of Rockville’s resilient and growing local economy, coupled with a conservatively managed budget, supported by a robust slate of policies.”
Moody’s Investors Service said: “The city’s financial position is very strong and is expected to remain so given management’s conservative budgeting practices, prudent management of expenditures and adherence to formal fiscal policies.”
On Sept. 25, UBS Financial Services was the winner from among 10 bidders as the city sold $16.9 million in general obligation bonds at a rate of 3.22%. The bond proceeds will support water infrastructure projects; the city’s contribution to upgrades and expansion of the District of Columbia Water and Sewer Authority’s Blue Plains Wastewater Treatment Plant, which treats the city’s wastewater; and highly anticipated improvements to the F. Scott Fitzgerald Theatre, Lincoln Park Community Center and the outdoor recreation pool at the Rockville Swim and Fitness Center.
More information about these projects can be found in the city’s Fiscal Year 2025 Adopted Operating Budget and Capital Improvements Program at www.rockvillemd.gov/budget.