April
27, 2008, North Richland Hills, Texas
City of North Richland Hills
Earns Credit Rating Upgrade
Upgrade means City will pay less
interest when it borrows for
municipal projects.
Citing the City’s consistently
strong financial performance,
Standard and Poor’s Rating Services
(S&P) has raised its rating on North
Richland Hills debt one from ‘AA-‘
to ‘AA.’ The ‘AA’ rating will mean
lower bills for municipal capital
projects and improvements because it
allows the City to borrow money at
lower interest rates.
“We’re excited to receive an upgrade
in the rating,” said Mayor Oscar
Trevino. “Few Texas communities have
a higher rating. This puts us in the
top echelon of local governments and
will ultimately save North Richland
Hills taxpayers money.”
The City of North Richland Hills
credit ratings fall in the top 2% of
municipalities in the State of Texas
and the top 10% nationwide. Moody’s
Investor Services also recently
reaffirmed the City’s Aa3 rating
with their firm.
S&P’s analysts stated that their AA
rating reflects the City’s continued
tax base and economic
diversification and consistently
strong financial performance,
despite ongoing capital needs
related to growth.
“The City consistently reports
strong financial performance while
addressing growth-related capital
needs,” said Standard and Poor’s
credit analyst Kate Choban.
City Manager Larry Cunningham said
the City Council and staff are to be
commended for the strategic
planning, leadership and wise use of
resources that has contributed to
rating upgrade and the strength of
the City’s financial condition.
“We have told our residents that
fiscal responsibility is one of our
primary goals,” Mr. Cunningham said.
“Our good credit rating and the
interest savings we will realize are
proof that we are meeting that
goal.”
North Richland Hills has a general
obligation bond sale scheduled for
Monday, April 28, 2008. The sale
will include $4,000,000 in General
Obligation Bonds for 2003 bond
election projects. The bonds will be
used for street projects: $2,200,000
for North Tarrant Parkway,
$1,700,000 for Rufe Snow Drive and
$100,000 for Douglas Lane.
The sale of $4,750,000 in
Certificates of Obligation is also
scheduled on April 28. This includes
$150,000 for the design of a new
aquatic park attraction, $2,000,000
for the design of a new recreation
center, $220,000 for an ambulance
replacement, $500,000 for drainage
improvements at Iron Horse Golf
Course, and $1,880,000 for water and
sewer system improvements.
Finance Director Larry Koonce said
having high investment grade credit
ratings from Standard and Poor’s and
Moody’s Investor Services will help
the City lock in low interest rates
for Monday’s sales and save the City
thousands of dollars.
“These ratings are the stamp of
approval that reflects our credit
worthiness and demonstrates our
strong financial condition to those
interested in purchasing our bonds,”
Mr. Koonce said.
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