Tacoma, Wash. – Moody’s Investors Service announced an upgrade to the City of Tacoma’s Limited Tax General Obligation (LTGO) bonds and Unlimited Tax General Obligation Bonds (UTGO) bonds from Aa3 to Aa2.
“This is great news for the City,” said Tacoma Mayor Marilyn Strickland. “We will continue to work hard to sustain these fiscal improvements, make fiscally responsible decisions and maintain our solid financial footing.”
The rationale Moody’s cited for the increased ratings included: the City’s sizeable tax base; the improving economy; solid reserve levels and liquidity; and its manageable debt and pension liabilities. This ratings adjustment follows an upgrade to the City’s LTGO rating from A1 to Aa3 in February 2017 to mirror the rating on its UTGO obligations.
Moody’s noted that the City’s financial profile has improved materially over the past five years. The City’s strong performance over this period reflects a number of factors besides the healthy economic recovery, including its focus on structurally balancing its budget, strong financial policies and a significant increase in its reserve levels.
“The City continues to focus on a variety of policy measures and planning processes targeting long-term fiscal stability,” said City Manager Elizabeth Pauli. “Judicial use of one-time funds, budget monitoring, and multi-year financial planning now guide our actions and have contributed to our improved financial outlook.”
“We are pleased to receive this upgrade, which is testament to the continued improvements to the City’s financial profile over the past few years resulting from conservative financial management practices along with a strengthening local economy,” said City Treasurer Teresa Sedmak.
– City of Tacoma