Robust local economy, strong financial policies and sizable corporate presence cited as areas of excellence leading to AAA and Aaa ratings
For the 15th year in a row, both Standard & Poor’s and Moody’s credit rating agencies have reaffirmed Richardson’s “Triple A” status, the highest possible rating available for credit worthiness. Richardson has held AAA status from Standard & Poor’s for 17 years now, and this is the 15th year in a row the City has received an Aaa rating from Moody’s.
“These ratings reflect our strong fiscal policies and our diverse local economy,” said Richardson Mayor Bob Dubey. “We are proud to have received ‘Triple A’ status once again, and proud that it will ensure we are able to continue to receive the lowest interest rates possible as we make investments in key areas for our future.”
The City of Richardson sells bonds on an annual basis to fund large public projects, like roads, water mains, fire trucks, and other infrastructure and equipment purchases. The bond sales allow the City to address immediate needs and manage financial resources in a way that balances current obligations with future benefits.
To attain “Triple A” status, the City must meet stringent fiscal performance and control standards across multiple factors, including financial stability, capacity to fulfill debt obligations, and economic conditions.
“‘Triple A’ status reflects the importance we place on being responsible stewards of taxpayer funds here in Richardson,” said City Manager Don Magner. “We take pride in providing the best programs and services possible, and are committed to financial, accounting and budgeting best practices and performance worth of this recognition.”
Moody’s and Standard & Poor’s use comprehensive methodologies to determine credit ratings. The following excerpts were included in their latest ratings rationale for the City:
Standard & Poor’s Rationale
In its rationale, Standard & Poor’s explained that the rating reflects Richardson’s “robust local economy anchored by an expanding presence of corporate offices, manufacturing facilities, and higher educational institutions” and “strong financial policies and practices, including comprehensive long-term capital and financial planning, formalized debt management, investment and reserve policies, and a strong institutional framework.” It added that its stable outlook “reflects our expectation that the city will maintain positive budgetary performance and robust reserves, supported by continued economic expansion and conservative budgeting practices.”
Moody’s Rationale
In its rationale, Moody’s said the rating reflects Richardson’s “established history of strong operating performance and maintenance of Aaa level reserves coupled with relatively low long-term liabilities and fixed costs. The city benefits from the stabilizing institutional presence of the University of Texas at Dallas, one of the main campuses of the University of Texas System,” and “a sizable corporate presence, both of which drive strong economic expansion and high income and wealth levels.” Moody’s also noted that Richardson’s “experienced management team, conservative budgeting practices, and ongoing economic expansion and revenue growth are likely to maintain the city’s financial strength.”
2024 Bond Sale
This year, the City plans to sell approximately $67.5 million in General Obligation Bonds, including funding for street improvements, municipal public buildings, parks, sidewalks and drainage projects. Plans also call to issue approximately $21 million in Certificates of Obligation to help fund water and sewer projects, and renovations to the Library. The remaining funds will be used for solid waste equipment and fire equipment.
About the City of Richardson
The City of Richardson is widely recognized for its commitment to excellence, its rich history and its bright future, all of which make Richardson a smart choice for residents and businesses. Known globally for its high-tech business leadership, the City of Richardson also offers a high quality of life, diverse array of neighborhoods, convenient Metroplex location, multi-modal transportation infrastructure and outstanding City services. Richardson has been repeatedly recognized as one of the top places to live and work by the national media, and the City remains dedicated to continuous improvement, as well as to the principles of open government and two-way communications with residents. To learn more, visit www.cor.net.
