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The original item was published from 8/5/2016 2:51:48 PM to 8/5/2016 2:57:45 PM.

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City of Allen Headline News

Posted on: August 5, 2016

[ARCHIVED] Allen Earns Highest Possible Bond Rating

Moody's logo over photo of Allen City Hall

Moody’s Investors Service has upgraded the City of Allen’s bond rating to Aaa from Aa1, reflecting its strong fiscal management and the steady growth of its tax base. The upgrade will provide significant savings to Allen taxpayers by qualifying the city for lower interest rates.

In addition to the improved bond rating, the city was assigned a “stable outlook,” reflecting the expectation that the city’s financial and economic profile will remain strong given its favorable location and steadily improving revenue performance.

According to Moody’s, the upgrade was driven by Allen’s healthy reserve funds, resident wealth levels, manageable debt burden and adherence to formalized policies that guide favorable financial practices.

The Aaa rating affects $96 million in Allen’s general obligation limited tax. The city also received a Aaa rating for its $7 million General Obligation Refunding Bonds Series 2016 and approximately $2 million in tax notes.

Allen has already received a AAA rating from Standard & Poors.

“Moody’s upgrade to Aaa demonstrates the city’s strong financial management and standing in the municipal market,” said Allen City Manager Peter Vargas. “As we begin issuing the bonds that were approved by Allen voters in May, our interest costs will now be reduced.”

This bond program will finance a new fire station, library expansion, police firearms training center, recreation center, new parks and various street improvements.

“This is a credit to our city leadership and the efforts of our staff,” said Allen’s Chief Financial Officer Eric Cannon. “Allen has a legacy of strong financial decisions, which put us in a position to earn this upgrade.”

Moody’s also upgraded the bond rating on Allen’s Community Development Corporation sales tax revenue bonds. The rating improved from Aa2 to Aa3.

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