Standard and Poor’s Rating Services has upgraded the city of Waxahachie’s bond rating from AA- to AA. According to information released from Standard & Poor’s, the rating increase was based on several factors, including “strong management, with good financial policies and practices.”
The city’s role as a regional economic and retail center as well as healthy residential and commercial growth contributed to the rating increase. Additionally, the report cited that factors such as a local strong economy, close proximity to the DFW Metroplex, strong budgetary performance, healthy fund balance, and transparency measures led to the upgraded rating. The Standard & Poor’s rating comes as a positive indicator in how the City fared during the economic uncertainty resulting from the COVID-19 pandemic.
“The guidance of a fiscally conservative City Council and sound day-to-day practices on a management and staff level definitely contributed to the rating increase. Additionally, the leadership and diligence of our Finance Director Chad Tustison and his team most certainly helped in positively impacting this rating upgrade,” said City Manager Michael Scott.
The Standard & Poor’s report indicated that while the City’s rapid growth will likely increase forthcoming financial obligations due to infrastructure and growth-related capital needs, Waxahachie is poised to continue to remain in a healthy financial state into the future.
The increase in the city’s bond rating not only offers a stable option to investors, but may also translate into savings for the city. With a higher bond rating, the city will typically receive more favorable interest rates when issuing debt, which ultimately translates to savings to the taxpayers.