City of Gig Harbor Receives Upgraded Bond Status’
Gig Harbor, Wash. March 7, 2017 – Recently the City of Gig Harbor received word it has been upgraded on two separate bond ratings. The rating increase will mean a significant savings over the years to the city and its rate payers.
On March 1st, Moody's Investors Service upgraded the General Obligation Limited Tax (GOLT) bond ratings on Gig Harbor. Moody’s raised the City’s GOLT bond rating from Aa3 to Aa2. Factors that could lead to an upgrade include strong operating performance with a trend of surpluses to boost the reserve position and improvement in general credit.
Secondly, on March 7th, the city’s water and sewer bond rating was raised on S&P Global Ratings to AA from AA-. This increase in the rating is based on a criteria rating for the water and sewer system showing very strong enterprise risk and financial risk profiles. Other factors include location in the economically diverse Pierce County service area with above –average income levels and proven track record of maintaining good liquidity.
“This has been a team effort on behalf of the staff, administration and city council,” says Ron Williams, City of Gig Harbor Administrator. “Finance Director Dave Rodenbach and the entire staff have demonstrated professional and conservative management and a well-planned capital program in order to make the case for the higher bond ratings,” Williams said. “The Mayor and City Council have insisted on adequate reserves and conservative financial policies which have paid off with these higher ratings.”
The report from Moody’s and S&P Global Ratings is available at www.cityofgigharbor.net.
Gig Harbor, Washington’s Maritime City.