North Fulton Today

The City of Roswell has once again been awarded a “AAA” bond rating by both S&P Global Ratings and Moody’s Investor Services, two major global agencies that rate creditworthiness. Roswell was the first city in Georgia to receive a AAA bond rating and has maintained that rating, the highest available, since 2000. The rating is based on the City’s strong economy, financial position, and established fiscal policies. Today, Roswell is one of only seven cities in Georgia with a AAA bond rating from both S&P and Moody’s.

The AAA rating shows financial markets that the City is a safe bet for issuing debt and at low risk of defaulting on that debt. As a result of this excellent bond rating, the City is able to issue $86.2 million (out of a total of $179.6 million approved by voters in November 2022) in bond debt with the best interest rates the market allows.

“This is great news for the City,” Mayor Kurt Wilson said. “It shows that decisions made by this Mayor and Council have been fiscally sound and will allow us to get the best interest rates on the bonds that we have issued.”

Following a competitive sale on May 22, $66.2 million in Series 2023A (non-taxable) General Obligation Bonds were sold to Citigroup Global Markets Inc., who offered the lowest true interest cost (TIC) of 3.97%. In addition, the City sold $20 million in Series B (taxable) General Obligation Bonds to Raymond James & Associates Inc. at the lowest offered TIC of 5.18%. Roswell’s elected body approved the bond resolutions at the Mayor and City Council meeting on the evening of May 22.

Of the $86.2 million in bonds that issued, $53.1 million will be used toward Recreation, Parks, bicycle and pedestrian paths and sidewalks; $13.1 million will be used towards Public Safety (Police and Fire) projects; and $20 million will be used towards a public parking deck in downtown Roswell. A second issuance of additional bond funds is expected in spring/summer of 2025.

In a letter to the City, ratings firm Moody’s said it awarded the AAA rating based on Roswell’s “very strong reserves and liquidity that will further improve in the current (2023) fiscal year, along with its excellent residential wealth and income levels.”

In its own letter, S&P credited Roswell’s robust economy, well-embedded and formalized financial policies, balanced financials, and “an adequate debt profile.”

About Roswell’s Bond Program

In November 2022, Roswell voters approved all three Bond Referendum questions on the ballot by large margins: $107.6 million for Recreation, Parks, Bicycle and Pedestrian Paths, and Sidewalks (74% in favor); $52 million for Public Safety (Police & Fire) Capital Projects (73% in favor); and $20 million for a Downtown Public Parking Deck (57% in favor). Bond funds will pay for a wide variety of park improvements, trail and connectivity projects, bike and pedestrian paths and sidewalks, a new Public Safety Headquarters, replacement and/or construction of several fire stations, and a new public parking deck in downtown Roswell.

For more information about Roswell’s bond program, visit www.RoswellGov.com/Bond.

Original source can be found here.