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.
“Rockville has historically maintained a strong record of conservative budgeting and finances, in our view, due to a very strong management team with strong well-embedded, formal financial-management policies and practices under our Financial Management Assessment (FMA) methodology, as well as very strong economic characteristics,” Standard & Poor’s said in its ratings report.
Moodys Investors Service expects the city’s rating outlook to remain strong. “The stable outlook reflects Moody’s expectation that the city’s credit profile will remain in line with the Aaa rating category due to prudent financial management, a strong local economy, and moderate long-term liabilities,” Moody’s said in its report.
“The city’s finance staff take pride in the prudent and responsible management of city finances and celebrate this strong rating announcement,” Stacey Webster, the city’s chief financial officer, said in an email to the Mayor and Council, reporting the ratings. “Finance staff will continue to promote strong financial management policies and will continue to provide guidance and recommendations that will keep the city on a path of financial stability.”
On Oct. 19, the city sold $11.2 million in general obligation bonds to TD Securities at a 3.74% interest rate. The bond proceeds will finance ongoing water main rehabilitation and improvements citywide; advanced water meter infrastructure implementation and replacements; 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 stream restoration and improvements at the Croydon Creek and Calvin Park tributary stream to Rock Creek.
More information about these projects can be found in the city’s Fiscal Year 2023 Adopted Operating Budget and Capital Improvements Program at www.rockvillemd.gov/budget.