City receives upgraded bond rating
SEGUIN – The City of Seguin received notice that their bond rating was upgraded from AA- to AA and the city’s financial outlook adjusted from positive to stable. This is the best rating the city has ever received. The upgraded rating was the result of an annual review of the city’s financial situation by S&P Global Ratings.
“We were pleasantly surprised by the results. The AA rating will help us get better, lower interest rates on future certificates of obligations that can be used for projects such as improving streets and purchasing equipment,” said Susan Caddell, Finance Director.
According to the S&P Global Ratings documents, the rating was determined due to numerous factors including “sustained and significant growth in the city’s tax base”, very strong management and strong budgetary performance. Caddell says new financial management policies and procedures helped increase the rating. They have completed a Five Year Financial Forecast for the city, and have adopted a debt management policy. Caddell also presents current financial reports to council on a monthly basis.
“We continue to maintain a fund balance well about the recommended three months operating threshold,” added Caddell.
S&P Global Ratings’ outlook for the city is very positive: “Seguin will likely maintain its strong financial performance and very strong reserves and liquidity”. These results should help residents feel very confident in how their local government is operating. The last time the city’s rating was upgraded was in 2016. ###