On May 7, 2009, Standard & Poor’s (S&P) upgraded the rating of the City of Arvada’s outstanding and refinanced Sales Tax Bonds, from a AA+ to a AAA rating.
S & P’s announcement regarding the upgrade states, “The rating reflects our view of the City’s…..historically strong sales and use tax revenue growth; and a stable and diverse economy, coupled with strong wealth and income indicators.”
“This upgraded rating at this particular time is a testament to the solid and conservative financial planning practices of the Arvada City Council during good and bad economic times,” stated City Manager Craig Kocian.
Only One Other Colorado City With Top Rating
This top rating is shared with only one other city in the State of Colorado - Lakewood.
Arvada refinanced the Sales Tax Bonds to secure a lower interest rate cost on the outstanding debt. In addition, a higher rating for cities translates into lower borrowing costs.
The City was paying an average interest rate cost of 4 percent on the outstanding debt prior to refinancing it. The average interest rate cost on the new debt will be 2.45% over the next 9.5 years. This will save taxpayers more than $2.7 million over the life of the debt, or an average of $270,000 each year.
- by City Manager