Saint Paul earns AAA S&P Rating
AAA rating comes as rating agencies have changed criteria for local governments
Today, Mayor Chris Coleman announced that the City of Saint Paul has again earned a AAA rating from Standard and Poor’s Rating Services. The rating was based on a number of factors, including Saint Paul’s strong budgetary performance and flexibility, strong financial management and broad and diverse economy.
“Amidst an economy in recovery, we have made being good stewards of taxpayer dollars a priority, and Standard and Poor’s rating today reflects our success. This rating reflects the city’s strong budget, strong economy, and strong financial outlook. It comes after years of hard work and tough decisions and I couldn’t be prouder,” Saint Paul Mayor Chris Coleman said.
“Today’s announcement is the result of years of hard work,” said Saint Paul City Council President Kathy Lantry. “Working collaboratively and creatively to build a strong budget year after year is what we do in Saint Paul. S&P’s rating is proof that what we are doing is working.”
Standard and Poor’s report specifically cited:
- Very strong management, with strong financial policies;
- Adequate economy, benefiting from participation in the Minneapolis/Saint Paul metropolitan area;
- Very strong budgetary flexibility, with available general fund reserves exceeding the city's 15 percent policy;
- Strong budgetary performance, with a recent trend of at least balanced general fund operating results, and projections for future balanced results, including in total governmental funds;
- Very strong liquidity, providing very strong cash levels to cover both debt service and expenditures; and
- Adequate debt and liability position.
"Saint Paul has worked hard to achieve structurally-balanced budgets and maintain a positive budget variance each year,” said Saint Paul Finance Director Todd Hurley. “With a now-adopted structurally balanced budget for 2014, a strong fund balance reserve, and continued strong financial management, the city will remain financially strong for years to come.”
The outlook on all ratings is stable.