Standard and Poor’s affirms City of Shoreline’s AA+ bond rating

From the City of Shoreline

Standard and Poor’s Ratings Services recently affirmed the City of Shoreline’s ‘AA+’ long-term bond rating. An AA+ rating means the City’s capacity to meet its financial commitments is very strong and is one of the highest ratings a city can receive. Credit ratings are a credit agencies opinion on the general ability of an entity, such as a city government, to meet its financial obligations. Credit rating decisions are based on a variety of criteria. Below is an excerpt from S&P’s Shoreline report:

The ratings reflect our view of the city’s:

• Strong income and extremely strong wealth indicators, bolstered by the city’s participation in the diverse Puget Sound economy;
• Very strong general fund financial position, and a history of maintaining stable reserves at very strong levels;
• Strong financial management policies; and
• Low overall debt levels relative to market value.

SP also confirmed that Shoreline’s future outlook is ‘stable’. According to SP, “the stable outlook reflects our opinion of the city’s very strong reserves and robust management policies.”

Shoreline City Council and staff are committed to being good stewards of taxpayer money. They have worked together to maintain the City’s positive and stable financial condition. The City has fully funded reserves that meet or exceed City policies. The City’s Revenue Stabilization Fund (“rainy day reserve”) totals $5.2 million, equal to approximately 37% of the City’s economically sensitive operating revenues. This exceeds the 30% minimum established by the City Council. The 2013 Proposed Budget also provides a General Fund ending fund balance of $6.1 million, which exceeds the minimum policy requirement of $4.4 million.

As a result of its strong financial policies, diligent financial management, and conservative budget planning, the City continues to maintain its AA+ bond rating and SP’s highest financial management rating of “strong.” The City has twelve consecutive years of Unqualified (clean) Audit Opinions, and has received 13 consecutive GFOA Budget Awards.