Moody's gives Aa2 ratings to City, Price Blvd. bonds

Published on September 09, 2024

Moody's Ratings, a global company that provides credit ratings, research and risk analysis, has maintained the City of North Port's Aa2 issuer rating for the second straight year. This rating signifies that North Port's credit position is of high quality and poses very low credit risk. Higher bond ratings are typically accompanied by lower interest rates.

Moody's has also assigned an Aa2 rating to the City's approximately $55.3 million infrastructure sales surtax revenue bonds, issued this year to pay for the upcoming Price Boulevard Widening Project construction. Voters had approved up to $80 million in bonds in November 2022, to be paid with the City's proceeds from the Sarasota County penny sales tax.

In its reports, Moody's notes that the City "will continue to benefit from its growing tax base, which is partially offset by the continued challenge of scaling to provide service to a growing population. The city's position will remain stable, with a modest surplus anticipated for fiscal 2024. Long term liabilities and fixed costs will remain manageable inclusive of future capital plans."

The report also recognized the City's responsible budgeting, noting that "management has been able to add reserves through operating surpluses, keeping the city's available fund balance ratio fairly stable (at fiscal 2023 close it was 35%)," the Moody's report notes.

"These ratings demonstrate the City's commitment to financial management and good stewardship of taxpayer dollars," said Finance Director Kimberly Williams. "We will continue to protect the City's financial interests through fiscally responsible budgeting practices while finding ways to maintain levels of service and meet North Port's future needs."

The City's Finance Department earned the Distinguished Budget Presentation Award from the Government Finance Officers Association earlier this spring for the 16th year in a row. This award is the highest form of recognition in governmental budgeting.

The City Commission will hold two public hearings this month, on Sept. 11 and Sept. 25 at 5:01 p.m., to adopt its Fiscal Year 2025 budget. The recommended budget can be viewed online at NorthPortFL.gov/Budget.

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