In addition to taxpayer savings, the greater principal will also allow the City to move forward on important projects for Tampa’s development and economic prosperity, including the new City Center at Hanna Ave.
Strong governance...Very strong budget flexibility...Proactive risk management...Ample budget reserves.
These are among the laudatory descriptions of the City of Tampa’s financial management from the leading rating corporations Moody’s, S&P and Fitch, which granted the City of Tampa excellent ratings following two new bonds.
The City of Tampa recently secured two new financial bonds that will result in significant savings. The bonds include:
- $27.29M Non-Ad Valorem Refunding and Improvements Revenue Bond (will be used to refinance debt and finance various capital improvement projects)
- $97.675M Non-Ad Valorem Improvement Revenue Bonds also known as “Sustainability Bonds” (will help fund sustainability and resilience initiatives)
The City was able to leverage its strong ratings outlook and a history of responsible financial stewardship to secure low interest rates and a higher-than-expected principle for these bonds. In addition to taxpayer savings, the greater principal will also allow the City to move forward on important projects for Tampa’s development and economic prosperity, including:
- The new City Center at Hanna Ave, which will provide City services closer to residents, improve customer services and provide public meeting spaces
- The East Tampa Recreation Complex
- Vila Brothers Park
- The Tampa Convention Center
- And new Fire Station #24.
Tampa received top ratings for these bonds including a AAA rating from S&P Global Ratings, an Aa2 rating from Moody’s Investors Service, and an AA rating from Fitch Ratings.
These prestigious ratings are a testament to the faith creditors have in the City of Tampa’s continued economic momentum and long-term prosperity. They also help define Tampa as a stable economic hub, attracting new developments, jobs, and residents to the area.
“These bonds are a great example of how we’re Transforming Tampa’s Tomorrow in a smart, prudent, and responsible way,” said Mayor Jane Castor. “By securing lower interest rates and a large principal, we can move forward on significant projects while staying within our budget. The Tampa City Council, our CFO, and the entire team has done an amazing job of positioning Tampa as a city that creditors are eager to do business with.”
“Tampa continues to shine as a city with a great financial future, despite setbacks from COVID-19,” said Dennis Rogero, Chief Financial Officer for the City of Tampa. “We’re proud of the ratings we received on these new bonds and we look forward to maximizing City savings while serving our community.”
Here’s What Rating Agencies are Saying About The City of Tampa
“Our rating on Tampa is supported by what we consider the city's comprehensive management policies, stable financial performance, and very strong budget flexibility despite the recent pandemic. The stable outlook reflects our view of the city's strong economy, which continues to experience robust growth and contributes to improvement in market value per capita and income.” - S&P Global Rating
“The City of Tampa, Florida benefits from its role as a major economic hub, a factor that will continue to help attract new development, jobs, and residents to the area... Tampa's credit quality benefits from strong governance. This is illustrated in a number of factors including regularly outperforming budgeted revenues and expenditures, maintaining a detailed and regularly updated capital improvement plan, and proactively managing the city's environmental risk exposures. The city maintains a policy that requires general fund balance to be no less than 20 percent of expenditures, a policy it has routinely exceeded.” - Moody’s Investors Service
“The ‘AA+’ (rating) IDR reflects the city’s solid revenue growth prospects and revenue-raising ability, low long-term liability burden and ample unrestricted reserves supporting its superior level of gap-closing capacity. Fitch expects continued management of growth in expenditures matched by revenues and maintenance of reserves in an amount that provides the highest level of financial flexibility to withstand future economic downturns” - Fitch Ratings