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AAA Rating Reflects City's Conservative Financial Management

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  • by City Manager
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Arvada, CO . . . . On August 15, S&P Global Ratings raised its issuer credit rating to AAA from AA+ for the City of Arvada.  In addition, S&P assigned its AA+ long-term rating to Arvada’s series 2016 certificates of participation.

The S&P report listed the following information as the foundation for their rating actions:   

  • Strong management, with good financial policies and practices under their Financial Management Assessment methodology.
  • Strong budgetary performance, with an operating surplus in the general fund.
  • Very strong budgetary flexibility, with an available fund balance in fiscal 2015 of 46% of operating expenditures.
  • Very strong liquidity.
  • Very strong debt and contingent liability position.
  • Strong institutional framework.

S&P’s announcement states, “We consider Arvada’s economy very strong…..The city’s market value grew by 23.1% to $13.2 billion in 2015……We consider the city’s tax base very diverse….. the city’s management as strong, with good financial policies and practices.”

Arvada’s City Manager Mark Deven stated, “These ratings are a testament to the solid and conservative financial planning practices of the Arvada City Council during good and bad economic times.”

Resources

S & P Global Ratings Documents