The City of Richardson was officially informed this week it has received the highest possible bond rating status from both Moody’s and Standard and Poor’s credit rating agencies. Richardson has maintained a AAA rating from Standard and Poor’s for six years in a row, and this is the fourth year in a row the City has received a Aaa rating from Moody’s.
Standard & Poor’s Comments
In its rationale, S&P cited Richardson’s, “Location and participation in the Dallas-Fort Worth Metroplex economy, coupled with a sizable economic base of its own, which serves as a primary employment center with the significant presence of technology-based companies; Very strong income and wealth levels; Strong, tenured, and responsive management; Historically very strong financial performance, which is partly due to its strong financial policies and practices; and Moderate overall debt levels as a percentage of market value.”
Moody’s rationale reported its rating was based on, “The Aaa rating is reflective of a relatively sizable and affluent tax base that is bolstered by a substantial in-flow of employment; strong financial management with historical stability reserve levels, a moderate yet manageable debt burden.”
“Richardson has a long history of being a well-run community, thanks to our high-tech background, progressive planning and efficient spending,” said Richardson Mayor Bob Townsend. “All of these things are a big part of our heritage, and the City Council continues to place a tremendous amount of focus on responsible fiscal policies. These ratings by external examiners reinforce that we are making good decisions, and we are excited about the investments we continue to be able to make in this community thanks to our exceptional performance.”
Planned Bond Sale
Every year, the City sells bonds to fund replacement of capital equipment and infrastructure improvements. This year the City plans to sell $8.45 million, which includes funding for infrastructure, facility improvements, technology, equipment purchases, an ambulance and pumper, solid waste equipment and other long-term capital needs.
An estimated $21.8 million in existing debt will be refunded to result in interest savings. The refunding bonds will not add new debt, and they will not extend the final maturity date of the existing bonds.
More on Richardson’s Ranking
Moody’s rating places Richardson among the top 6.2 percent of rated cities in the nation and 2.2 percent of rated cities in Texas to hold Aaa status. It has given only four other cities in Texas the same designation. Standard and Poor’s AAA rating places Richardson among the top 5.5 percent of rated statewide communities.
Richardson is one of only five communities in Texas to hold "Triple A" ratings from both agencies.
Richardson successfully weathered the telecom downturn a decade ago. Since then, the City has focused on strategically diversifying its economic development strategy, which helped during the most recent recession. Evidence of the community’s stability can be found in the City’s relatively strong sales tax figures, consistent property values, new investments in development and locating of corporate office parks and long-term strong fiscal ratings from outside examiners.
About the City of Richardson
With approximately 100,000 residents, the City of Richardson is widely recognized for its commitment to excellence, its rich history and its bright future, all of which make Richardson a smart choice for residents and businesses. Known globally for its high-tech business leadership, the City of Richardson also offers a high quality of life, diverse array of neighborhoods, convenient Metroplex location, multi-modal transportation infrastructure and outstanding City services. Richardson has been repeatedly recognized as one of the top places to live and work by the national media, and the City remains dedicated to continuous improvement, as well as to the principles of open government and two-way communications with residents. To learn more, visit www.cor.net.