Standard and Poor’s Global Ratings has upgraded its long-term rating to “AA-“ from “A+” for the City of Santa Maria’s Water and Wastewater Revenue Refinancing Bonds. This reflects the agency’s opinion of the City’s strong financial and operational management practices and policies, and a stable forecast.
The ratings agency said the City has:
- “Affordable service rates” in conjunction with preapproved 5 percent annual water and sewer rate increases through fiscal 2018;
- “Very low industry risk” as an essential public utility;
- “Manageable levels” of projected capital spending during the next five years; and,
- “The City does not expect to issue any additional debt and will be funding the capital improvement plan projects on a pay-as-you-go basis.”
Further, the agency noted, Santa Maria’s financial and operational information is easily obtained as its budget and audited financial statements are posted on the City website.
The City issued $50.1 million in taxable revenue refunding bonds in June 2012 to secure a lower interest rate of 4.36 percent, and achieve in cash flow savings of approximately $2 million per year. The original funding in 1993 and 1997 was to purchase a contract entitlement of State Water, finance acquisition and construction of certain water facilities, and other water-related purposes.
Questions may be directed to the City Manager’s Office, 925-0951 ext. 2372.
Department: City Manager’s Office
Contact Person: Mark van de Kamp, PIO/Management Analyst II
Telephone Number: (805) 925-0951 ext. 2372 or 720-4038
E-mail Address: email@example.com