When will we see a City of Lake Worth Press Release like this?

CITY OF DELRAY BEACH

MEDIA RELEASE

City Earns High Rating for General Obligation Bonds

June 8, 2010:  The City of Delray Beach has recently been notified that Standard & Poor's (S&P) Rating Services raised the City's rating for General Obligation (GO) bonds from AA- to AA. This upgrade reflects the City's strong financial management and is a noteworthy accomplishment compared to other cities whose handling of the recession's impact has resulted in downgraded bond ratings.

S&P's rating was based on several factors including the City's strong financial position and low debt burden with limited future capital needs. Also taken into consideration was the fact that the City's General Fund Unrestricted Fund Balance of $19.7 million had not been used to offset operating revenue declines as some other entities have done and that there was no significant debt to be issued as evidenced by the 5-year Capital Improvement Plan. 

Higher bond ratings benefit the City through lower interest costs for future borrowings. Because Delray Beach's upgraded bond rating indicates a financially sound municipality, bond buyers feel that the risk of loss is minimized and are willing to accept a lower interest rate return. According to S&P's Global Credit Portal Ratings Direct Summary: Delray Beach, Florida; General Obligation report dated May 7, 2010: "The stable outlook reflects S&P's expectation that Delray Beach will continue to maintain strong reserve levels despite decreased property tax revenues due to declining assessed values." 

"We are very proud that Delray Beach has received a higher bond rating given the tough economic climate every city is facing," states City Manager David Harden. "It is a reflection of the hard work and dedication of the City Commission and City employees to provide our community with quality service while being financially prudent."

To view Standard & Poor's Global Credit Portal Ratings Direct Summary: Delray Beach, Florida; General Obligation in its entirety, visit www.mydelraybeach.com and select Finance under Departments.  For more information, contact the Public Information Office at (561) 243-7190.