City of San José Recognized for Strong
Financial Management
San José, CA --- The City of San José has been recognized
twice in the past month for its sound fiscal management. It was announced
today that San José has maintained excellent General Credit Ratings
issued from Standard & Poor's, Moody's, and Fitch, the top three national
credit rating agencies. San José received a rating of "AA+"
from both Standard & Poor's and Fitch, and an "Aa1" rating
from Moody's.
The City's excellent credit ratings will save taxpayers money in financing
costs for the three general obligation bonds passed in the last two years
for park, library and public safety improvements.
"This is a strong vote of confidence in the fiscal management of
the City of San José by the financial community," said San
José Mayor Ron Gonzales. "Our residents will receive the true
benefit of these high ratings because we can save money on the cost of
building neighborhood improvements and invest more to enhance the quality
of life of our community."
Additionally, the high credit ratings will continue to have a positive
impact on City finances for future projects because the City will be able
to borrow at a lower interest rate. It is significant that all three agencies
issued San José an equivalent rating "across the board,"
indicating that all three have a high regard for San José's prudent
money management and long-term financial strategies.
Word of the positive bond ratings closely follows another strong indicator
of the financial community's continued confidence in San José.
On June 12th, the City received Investment Policy Certification from the
Municipal Treasurers' Association (MTA) of the United States and Canada.
This certification is awarded to municipal governments for successfully
developing a comprehensive written investment policy that meets criteria
for government agencies set forth by the MTA's certification committee.
It demonstrates the City's commitment to adhere to standards and guidelines
for public agencies that national rating agencies use to gauge the general
creditworthiness and investment practices with the primary objective of
maintaining the safety of the City's investments.
"Considering the current economic climate, it is all the more significant
that the City of San José continues to be recognized for its sound
financial operations and conservative fiscal management philosophy,"
said City Manager Del Borgsdorf.
"The strong bond ratings are the result of our ongoing efforts to
strengthen fiscal policies and procedures, internal controls, and reporting
requirements, while ensuring the City's financial resources are protected
and available to address short- and long-term needs."
San José has a large and diverse economic base. The City's financial
operations are marked by consistent operating surpluses and high year-end
fund balances. The City's fiscal policies include a three percent budget
contingency, budgeted emergency reserves, midyear financial reviews, and
five-year forecasting.
The high credit ratings put San José in the top rank for fiscal
management for California cities and they are the result of the City's
strong financial performance, excellent management policies and moderate
debt burden, along with a high level of commitment to fiscal practices
on the part of the Mayor and City Council.
These achievements add to a growing list of accolades related to the
City's strong record in fiscal management. For the 14th straight year,
the City has received a Certificate of Achievement for Excellence in Financial
Reporting from the Government Finance Officers Association (GFOA), and
for the 11th consecutive year, the City received the Distinguished Budget
Preparation Award from GFOA. For the 13th time, the City received the
Award for Outstanding Financial Reporting from the California Society
of Municipal Finance Officers (CSMFO), and the City received its second
Award for Excellence in Operational Budgeting from CSMFO. For the second
consecutive year, the City received the President's Special Recognition
Award for the 2000 Queensland Public Sector Annual Report Awards.
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