Standard & Poor’s recognized Suffolk’s consistent and solid operations, which bolsters already very strong finances. “The city strictly adheres to its fiscal policy, which promotes fiscal responsibility.” “The city continues to add new and expanding businesses and residential growth and development, which fosters a healthy local economy, provides employment and wage growth, and increases household income,” Hansen said. It also noted that Suffolk’s finances are strong and supported formal fiscal policies and conservative budgetary assumptions.
“The city is also committed to keeping spending growth at modest levels within available resources,” Hansen continued, “and is not budgeting for vacancy savings, which provides the flexibility to meet unplanned expenses that arise throughout the year.”Īccording to Franklin, the Moody’s rating reflected the continued growth and diversification of the city’s tax base, including residents’ healthy income levels. This results in a greater chance of meeting or exceeding sales projections and improving the chances of generating the net income needed to maintain a healthy reserve balance in the event of unplanned expenses, economic downturns or emergencies. “Rather than anticipate the best-case scenario for revenue growth when developing the annual budget, which may or may not materialize, the city is more realistic in its revenue projections. “The city maintains a conservative approach to budgeting for revenue and expenditure growth,” Hansen said. In his note to city officials, Fitch said the city’s ability to grow revenue and robust spending flexibility support a superior level of inherent budgetary flexibility and that Suffolk has healthy reserves supporting a high level of financial resilience. the amount borrowed – of the bond on the maturity date and the interest over a certain period of time, according to online data. The borrower is then required, depending on the terms, to repay the principal amount – i.e. In finance, a bond is a type of security where the issuer or obligor owes a debt to the holder or creditor. It also provides assurance that the city has the lowest-risk, high-quality bonds and that both principal and interest on the bonds will be paid on time and in full. Fitch Ratings confirmed this with its announcement at the end of July.Īccording to William Franklin, Media and Community Relations, City of Suffolk, the excellent rating also represents the overall creditworthiness of Suffolk’s government-issued bonds. “Some examples of capital improvements include school replacements, road improvements and renovations, and maintenance of town buildings and facilities, all of which contribute to the quality of life for Suffolk citizens.”įor the fourth consecutive year, the City of Suffolk’s three bond rating agencies – Fitch Ratings, Moody’s Investors Service and S&P Global Ratings – have confirmed the City’s AAA bond rating, meaning that the City has excellent credit and future financial prospects is stable. “A strong bond rating allows the City to borrow money for capital improvements at the lowest rates available in the financial market, saving the City and its taxpayers millions of dollars in interest payments over time,” said Tealen Hansen, Suffolk’s Treasury Director. In the case of the City of Suffolk, its credit rating is excellent, meaning that there is no problem when city officials need to borrow money for community improvement and development.
Think of it this way: a city government’s bond rating is like a person’s credit rating – the better it is, the more you can do.
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