Atascadero:  S&P Global Ratings Assigned ‘AA-’

ATASCADERO PUBLIC FINANCING AUTHORITY 2025A LEASE REVENUE BONDS

The City of Atascadero is excited to announce that Standard & Poor’s Global Ratings has assigned its long-term credit rating of “AA-“ for the Atascadero Public Financing Authority series 2025A Lease Revenue Bonds. The Rating Services reports the outlook is stable.  According to S&P Global Ratings, the stable outlook reflects their opinion that the City maintains “above-average economic metrics, mostly positive financial performance, ample available reserve position, and above-average financial management policies and practices”.

The Rating Service evaluated a number of factors including management policies and practices, increasing secured assessed valuations, growth of the local economy, the diversity in the tax base, operating results, debt and liability profiles, and environmental, social and governance factors.

The S&P Global Ratings report went on to state, “the city's main revenue sources will remain steady, providing balanced general fund operating results. We also expect the city will maintain its available reserve position well above 20% of operating revenues, given its minimum reserve policy, budgetary practices, and long-term financial planning that extend seven years, providing the city with time to make any appropriate budget adjustments as needed.”

“We are proud to receive an AA- rating from S&P Global Ratings, which reflects the City of Atascadero’s long-standing commitment to sound financial management, strategic planning, and responsible stewardship of public resources. This strong rating will help us save money on borrowing costs and invest in critical public safety infrastructure that will serve our community for generations to come, said Mayor Charles Bourbeau.”

“This rating is a direct result of the City Council’s fiscal discipline, our staff’s dedication to long-term planning, and the ongoing support of our community. With these bond proceeds, we can move forward on essential upgrades to our fire and police facilities, ensuring they are safe, modern, and resilient, said City Manager Jim Lewis.”

Bond proceeds will be used to replace the outdated and structurally deficient Fire Station No. 1 with a newly constructed, approximately 17,000-square-foot fire station. The new Fire Station No. 1 will also include an attached Emergency Operations Center.  The project further includes the renovation and modernization of Fire Station No. 2 to bring the facility into compliance with current safety standards, applicable codes, and operational requirements. In addition, the project provides for improvements to the City’s Police Headquarters to enhance operational efficiency and align the facility with modern policing standards. These improvements are expected to include upgraded security systems, refreshed interior finishes, improvements to restrooms and locker rooms, and the construction of a new, detached dispatch building of approximately 1,112 square feet.  The rating will lower costs of borrowing and is a testament to the strengthening economic conditions and strong leadership and management of Atascadero.

For view the full S&P analysis, click the button below.