Moody’s Investors Services and the Government Finance Officers Association (GFOA) have recognized the City of Peoria as one of the most fiscally sound cities in the Valley. Recently, Peoria was awarded an AAA bond rating and GFOA’s Distinguished Budget Presentation Award.
“The AAA bond rating is the highest rating available, and I am thrilled that Peoria has been recognized for its strong financial and economic performance,” says Mayor Cathy Carlat. “Peoria’s discipline in adhering to its Principles of Sound Financial Management assures transparency, protection, and oversight. This rating is a great value to Peoria residents as it allows us to leverage superior financial terms as we provide the infrastructure and amenities that make our city great.”
Moody’s Investors Services upgraded the ratings on the city’s outstanding general obligation bonds from Aa1 to AAA. “Material growth in Peoria’s tax base well exceeded prior expectations and strong economic performance as evidenced by growing population, expansion of employment, and substantial development,” according to Moody’s as reasoning for the upgrade. Moody’s also notes the conservative management, budgeting, and the robust financial policies of the city have resulted in “substantial strengthening of the city’s financial position.”
This past December, the City of Peoria closed their bond sale. Given the city’s AAA rating, Peoria was able to issue $55.9 million in general obligation bonds for a true interest cost of 1.65%. This is the lowest interest rate on new bonds for Peoria in 20 years.
Also, the City of Peoria received the Distinguished Budget Presentation Award for its fiscal year 2022 budget document. This is the 24th consecutive year the city has received this award and the 29th time overall. According to GFOA, the award reflects the commitment of the governing body and staff to meeting the highest principles of governmental budgeting.
“The bond rating and award are a reflection of the city’s commitment to conservative and responsible financial management and budgeting,” says City Manager Jeff Tyne. “The City of Peoria has worked hard to solidify their strong financial position. This, in turn, has allowed us to continually offer the highest quality municipal services to our residents and businesses.”
Peoria residents and businesses benefit from the AAA bond rating in that it allows the city to save interest costs when building important infrastructure such as streets, bridges, parks, and public safety facilities. For more information, visit peoriaaz.gov.
