City's Credit Rating Upgraded
Citing the City's consistently strong financial performance, Standard and Poor's Rating Services (S&P) has raised its rating on North Richland Hills debt one from 'AA-' to 'AA.' The 'AA' rating means lower bills for municipal capital projects and improvements because it allows the City to borrow money at lower interest rates.
"We're excited to receive an upgrade in rating," said Mayor Oscar Trevino "Few Texas communities have a higher rating. This puts us in the top echelon of local governments and will ultimately save North Richland Hills taxpayers money."
The City of North Richland Hills credit ratings fall in the top 20% of municipalities in the State of Texas and the top 10% nationwide. Moody's Investor Services also recently reaffirmed the City's Aa3 rating with their firm.
S&P's analysts stated that their AA rating reflects the City's continued tax base and economic diversification and consistently strong financial performance, despite ongoing capital needs related to growth.
"The City consistently reports strong financial performance while addressing growth-related capital needs," said Standard and Poor's credit analyst Kate Choban.
City Manager Larry Cunningham said the City Council and staff are to be commended for the strategic planning, leadership and wise use of resources that has contributed to rating upgrade and the strength of the City's financial condition.
"We have told our residents that fiscal responsibility is one of our primary goals," mr. Cunningham said. "Our good credit rating and the interest savings we will realize are proof that we are meeting that goal."
On April 28, North Richland Hills received an interest rate of 3.67 percent for the sale of $4.18 million in General Obligation Bonds. The bonds will be used for projects from the 2003 bond election including improvements to North Tarrant Parkway, Rufe Snow Drive and Douglas Lane. A portion of this funding will also go toward improvements at the intersection of Holiday Lane and Dick Lewis Drive.
The City also received an interest rate of 3.82 percent for the sale of $4.75 million in Certificates of Obligation. These funds will be used for water and sewer system improvements, the replacement of an ambulance, drainage improvements at Iron Horse Golf Course, the design of a new attraction at NRH2O and the design of a new recreation center.
Click here to watch the City Council Meeting regarding the sale of the bonds and certificates of obligation.
Finance Director Larry Koonce said having high investment grade credit ratings from Standard and Poor's and Moody's Investor Services helped the City lock in low interest rates for these sales.
"These ratings are the stamp of approval that reflects our credit worthiness and demonstrates our strong financial condition to those interested in purchasing our bonds," Mr. Koonce said.