Thursday, April 15, 2010
Bryan scores high bond ratings
The City of Bryan’s efforts to be conscientious during tight budget times have paid off, as the City recently received “high quality” bond ratings.
Bonds, which are similar to debt borrowed to purchase a home, are used for long-term capital needs such as streets, water lines and sewer lines. A municipal bond rating is a credit risk evaluation, which is often considered the most important factor affecting the interest cost on bonds.
The City received “high quality” bond ratings from Standard & Poor’s and Moody’s Investor Services. According to the bond rating agencies’ evaluation criteria, municipalities with quality bond ratings typically are positioned in a stable regional economy, have a favorable financial position, have sound debt structure and have strong financial management practices including healthy reserves based on rationale fund balance policies. More specifically to Bryan, the rating agencies recognized the stable regional economy, the City’s strong financial position, and the City’s strong and prudent financial management practices.
“I’m really proud of our staff’s effort to reduce expenditures, be financially responsible and be good stewards of public funds as these ratings directly impact debt interest rates,” City Manager David Watkins said. “Staff’s efforts and the City Council’s policy direction – along with the local economy – enable Bryan to be recognized with quality bond ratings from the two largest bond rating agencies in the nation.”
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Chief Financial Officer
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