City of Kirkland gets top bond rating
February 3, 2009 · 3:58 PM
Strong financial management practices, healthy fund balances and moderate debt levels have earned the City of Kirkland the highest credit rating of AAA from Standard & Poor’s Financial Rating Service. The rating was granted for the city’s general obligation bonds and water/sewer bonds, and is an upgrade from last year’s ratings of AA and AA-, respectively. The rating will allow for lower interest rates on city incurred debt which results in savings to Kirkland taxpayers.
“The city is cautious about incurring debt,” notes Tracey Dunlap, Finance Director. “These new ratings reflect the city’s long-term commitment to conservative fiscal policies.” The last time the City initiated general obligation bonds was in November 2002, when Kirkland voters affirmed the importance of parks, open space and playfields by approving an $8.4 million bond measure.
Cities sell municipal bonds for a variety of projects such as public building construction and park land acquisition. Before municipal bonds are sold, rating agencies “rate” the ability of the local government to repay bond principal and interest. S&P’s definition of an AAA rating is the highest rating given and represents maximum safety to the investors purchasing these bonds.
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