MANSFIELD, Texas — The City of Mansfield, Texas, continues to demonstrate strong creditworthiness as three of the nation’s top bond-rating agencies upgraded and affirmed the city’s bond rating.
Citing strong budgetary performance and flexibility, Standard & Poors has affirmed the AAA long-term rating for the city’s series 2021 combination tax and revenue certificates of obligation (COs). S&P first awarded Mansfield the prestigious AAA bond rating in December 2017.
“We view the city’s management as very strong with strong financial policies and practices under our FMA methodology,” S&P states. “Mansfield’s seasoned city council has an extensive succession plan, and it maintains a comprehensive set of financial and budgeting policies it reviews regularly.”
Fitch Ratings also affirmed the city’s AA+ bond rating for the $9.5 million in COs the city is issuing in 2021. Fitch highlighted that Mansfield saw a 9% growth in sales tax, contrary to what many parts of the country experienced. In September 2020, Fitch upgraded the city’s water & sewer revenue and drainage revenue funds to AAA, the highest rating that can be attained.
Citing strong governance practices along with continued strong revenue growth despite the ongoing pandemic, Moody’s Investor Services upgraded the City of Mansfield’s general obligation, series 2021 to Aa1 and sales-tax bonds from Aa3 to Aa2 for both the Mansfield Economic Development Corporation and Mansfield Park Facilities Development Corporation.
The city is selling $9.5 million in CO bonds to design, purchase, construct, improve, and expand Public Safety and Community Services facilities, infrastructure and equipment.
City Manager Joe Smolinski said Mansfield’s exceptional bond rating represents a win for the whole community.
“Mansfield residents demonstrated their commitment to their great city by shopping locally during the COVID-19 pandemic, and Mansfield grew stronger as a result,” Smolinski said. “This is a resilient city with resilient residents, and we are proud of how the Mansfield community responded during the most challenging of times.”
Two cents from every dollar of every taxable sale supports critical city services and programming. One penny supports general city services while the other penny is split equally between supporting the city’s park services and supporting economic development.
“A higher bond rating allows Mansfield to continue providing world-class services and programming while saving valuable interest over the life of its bonds,” Smolinski said. “This validates the efforts our City Council and staff have put into managing smart growth and fiscal responsibility.”
The city also received a clean audit opinion of its Comprehensive Annual Financial Report, presented to the City Council on March 22, 2021, by officials with BKD, LLP, one of the nation’s largest auditing firms. The annual audit examines all of the city’s financial accounts and assets.
Rating agencies use audit results to evaluate the creditworthiness of cities and corporations. Mansfield has received a clean rating from auditors every year for the last 35 years.
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