he city of Stephenville has received an A+ on its financial report card, according to a March letter issued by credit rating agency Standard and Poor’s.
The good news was presented to the finance committee Tuesday by City Administrator Mark Kaiser.
“(The rating) has economic benefits to the taxpayers and to the city. If and when we issue debt, we will be able to get a lower interest rate,” Kaiser said.
According to its Web site, Standard and Poor’s is a credit rating agency that issues opinions “about the ability and willingness of an issuer, such as a corporation or state or city government, to meet its financial obligations in full and on time.”
The rating is conducted free of charge, but relies on information provided by the entity. Kaiser said it is a good tool because it is “an independent, objective view” of the city’s financial integrity.
The A+ rating means that the city has a “very strong capacity to meet financial commitments.” The city’s rating has been on the rise for the last decade. In the early 1990s, it was recorded as BAA and in the late 1990s rose to an A.
“We do this every year, but apparently a continued positive economic environment, as well as a healthy stable financial condition for city government, has helped us achieve this (rating),” Kaiser said.
Kaiser said kudos should be given to all individuals involved in city business because without them, the rating would not have been possible.
“(I) commend both the elected officials and all of our administrative departments for maintaining a prudent financial management on a day to day basis,” Kaiser said. “It’s a reflection on the taxpayers, the council, staff and employees - just our community as a whole. To me, it is a reflection on all of us.”