“The city strives to be consistent in the level and quality of services it provides to its citizens year after year,” Hansen said.
Standard & Poor’s recognized Suffolk’s consistent and strong operations that bolster already very strong finances. “The city maintains strict compliance with its financial policies that promote fiscal stewardship.” “The city continues to add new and expanding businesses and residential growth and development, which facilitates a healthy local economy, provides job and wage growth, and increases household income levels,” Hansen said. He also noted that Suffolk’s finances are strong and supported formal fiscal policies and conservative budget assumptions. The Moody’s rating reflects the continued growth and diversification of the city’s tax base, including healthy income levels for residents, according to Franklin. “The city also strives to keep spending growth modest within available resources,” Hansen continued, “and does not budget for vacancy savings, which provides flexibility to cover unplanned expenses that occur during the year”.
This leads to a better chance of meeting or exceeding the revenue projections and improves the chances of year-end surpluses, which are necessary to maintain a healthy reserve balance in the event of unplanned expenses, economic downturns or emergencies. “Instead of projecting the best-case scenario for revenue growth in the annual budget development, which may or may not come to fruition, the city is more realistic in its revenue projections. “The city maintains a conservative approach to budgeting revenue and expense growth,” Hansen said. In his notification to city officials, Fitch said the city’s ability to raise revenue and strong spending flexibility support a higher level of inherent budget flexibility and that Suffolk has healthy reserve balances that support a high level of financial resistance. The borrower is then required, according to the terms, to repay the principal - that is, the amount borrowed - of the bond on the maturity date, as well as interest for a specified period of time, according to online data. In finance, a bond is a type of security under which the issuer, or debtor, owes a debt to the holder or creditor. It also guarantees that the city has high-quality bonds with the least amount of risk, and that both the principal and interest on the bonds will be paid on time and in full. The superior rating also represents the overall credit quality of bonds issued by Suffolk government, according to William Franklin, media and community relations, City of Suffolk. is stable Fitch Ratings is the latest to confirm this with its announcement at the end of July. director “Some examples of capital improvements include school replacements, road improvements and renovations, and maintenance of city buildings and facilities, which add to the quality of life for the citizens of Suffolk.”įor the fourth year in a row, the city of Suffolk’s three bond rating agencies, Fitch Ratings, Moody’s Investors Service and S&P Global Ratings, have affirmed the city’s AAA bond rating, meaning the city has a excellent credit and that your future financial prospects. “Having a strong bond rating allows the city to borrow money for capital improvements at the lowest interest rates available in the financial market, saving the city and its taxpayers millions of dollars in loan payments interest over time,” said Suffolk Chief Financial Officer Tealen Hansen.
In the case of the city of Suffolk, its credit is excellent, which means that when city officials need to borrow money for community improvements and development, there is no problem. Suffolk county news archives.Look at it this way: A municipal government’s bond rating is like a person’s credit score: the better it is, the more you can do.
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