City’s ‘AAA’ General Obligation Bond Rating and Financial Reserves
In 2013, the City of San Antonio continues to maintain a general obligation bond rating of “AAA” from all three major rating agencies.
The City of San Antonio's 'AAA' general obligation bond rating has been affirmed again by the three major bond rating agencies, Standard & Poor's, Fitch, and Moody's. Rating services provide these evaluations of a bond issuer's financial strength, or its ability to pay a bond's principal and interest in a timely manner. The 'AAA' bond rating is the highest credit rating that an entity can receive. San Antonio is the only city with a population of more than 1 million to receive a 'AAA' general obligation rating from all three major rating agencies.
This bond rating means a low cost of borrowing on the City’s property tax supported debt which allows us to maximize the amount of bond capacity for many of the City’s capital projects. For the community, it also means that there is continued strong financial management including long-range capital planning – we are planning for San Antonio’s future.
Some of the rationale for the City's 'AAA' bond rating cited in the bond rating reports included a diverse regional economy; strong financial management policies and practices; solid financial reserves; and comprehensive long-range financial planning.
City of San Antonio Budget Overview
The City passed an operating and capital budget of $2.3 billion in FY2013 that invested in high priority services that are important to the quality of life of all residents of San Antonio. The City continued its commitment to address our community's priorities including Police, Fire, Streets and Sidewalks, Code Enforcement, Animal Care Services, and Neighborhood Revitalization.
Operational improvements, reduced administrative overhead, and improved City processes to generate approximately $7.9 million in General Fund service efficiencies were leveraged with the FY2013 Adopted Budget. The identified savings and efficiencies allowed the City to invest in other high priority services and meet the challenges presented by current economic conditions.
The efficiencies adopted with the FY2013 Budget allowed for improvements to service delivery designed to meet the challenges of our growing City. The budget invested over $6 million in General Fund improvements that focused on service priorities critical to the community such as Police, Fire, Streets and Sidewalks, and Code Enforcement. Additionally, the City’s Property Tax rate of 56.569 cents per $100 of valuation was not increased.
Financial reserves of nine percent of General Fund Expenditures to be utilized to meet unforeseen operations or capital needs, and to assist the City in managing fluctuations in available General Fund resources from year to year, were successfully maintained.