Mayor Deegan Releases Explainer Videos on Proposed Budget and Reserves
JACKSONVILLE, Florida, August 6, 2024 – The City of Jacksonville just received its updated credit ratings and Fitch upgraded the City’s credit rating by two levels – from AA- to AA+ – in a reflection of Jacksonville’s robust financial health, strategic monetary management, and strong fiscal outlook into the future. S&P Global Ratings (S&P) and KBRA reaffirmed ratings of AA and all three credit rating agencies indicated a stable outlook.
All three leading agencies agree that Jacksonville is in a strong financial position after conducting an unbiased and apolitical analysis of the City’s current and future fiscal outlook. The agencies issued these ratings knowing the proposed 2024-2025 general fund budget and usage of operating reserves, proposed 2025-2029 Capital Improvement Plan (CIP), movement of infrastructure projects back into the Better Jacksonville Plan, inclusion of stadium renovation funding in the CIP, and 5-year projections for revenue and expenditures.
“Jacksonville continues to deliver strong financial results and credit rating agencies appreciate our diversified economy, fiscal responsibility, and investment in infrastructure and development projects,” said Mayor Donna Deegan. "This credit rating upgrade is a big deal for our city. It means savings for taxpayers through lower interest costs and money back into our coffers that can be spent on services for citizens."
"We are extremely proud of the credit rating upgrades from Fitch and ratings affirmations from S&P and KBRA," said Chief Financial Officer Anna Brosche. "These ratings reflect our commitment to sound financial management, strategic investments in our community, and the economic vitality of Jacksonville. As we move forward, we will continue to focus on fiscal responsibility and sustainable growth to ensure long-term prosperity for our residents."
Mayor Donna Deegan also released explainer videos on the proposed budget and reserves.
Credit Rating Background
The rating of a city’s bonds is a measure of its credit quality, which is the ability to pay a bond's principal and interest in a timely fashion. A higher bond rating generally means the city can borrow at a lower interest rate, saving taxpayers millions of dollars.
"The upgrade of the IDR to 'AA+' from 'AA' reflects the combination of Jacksonville's 'aaa' financial resilience assessment underpinned by its 'high midrange' budgetary control and expectation for available reserves to be maintained at 10% of general fund spending or higher," said Fitch's report on the upgrade.
In its ‘AA’ rating affirmation, S&P Global Ratings noted, “steady development and permit activity continue to support strong taxable value growth, with billions announced in new capital investments across new and existing employers, including the redevelopment of the NFL stadium in downtown Jacksonville.”
And KBRA’s affirmation of the City’s ‘AA’ rating said, “Over the last six years the City has added approximately $365 million in combined operating and emergency reserves, bringing the FY 2023 combined balance in these funds to 31.6% of General Fund revenues, well above the City’s Reserve Policy for the General Fund.”
About the City of Jacksonville
The City of Jacksonville is the largest city by land mass in the contiguous United States, serving nearly one million residents. City of Jacksonville leadership includes Mayor Donna Deegan and a 19-member City Council led by President Randy White. To learn more, visit jacksonville.gov.
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