Bangkok--4 May--Standard & Poor's
Standard & Poor's Ratings Services raised its rating to 'A+' from 'A' on Peoria, Ariz.'s improvement bonds. The outlook is stable.
"The raised rating reflects the city's strong financial management practices and policies and demonstrated ability and willingness to make budgetary adjustments in light of softening in key revenue streams," said Standard & Poor's credit analyst Matthew Reining.
Peoria's general fund financial performance continues to be good. The city has consistently maintained high unreserved fund balance levels, at 60% of expenditures or above, for the past decade. In audited fiscal 2009, the city's general fund did use $10.6 million in reserves, primarily to mitigate a decline in revenue streams during the year. Collections of sales tax revenues, which made up 34% of the general fund reserve in fiscal 2009, declined 13.8% from the prior year. This reflects the national recession as well as the housing market softness. The city also saw a drop in state-shared sales tax of $1.7 million, or 13.4%. In response, the city made midyear adjustments including reductions to expenditures and its capital improvement plan. At the end of fiscal 2009, the city had an unreserved general fund balance of $67 million, or 61% of expenditures. For fiscal 2010, the city's budget actions included cutting staffing and restructuring departments. As such, the city does not anticipate using reserves for recurring expenses.
Peoria (population 159,000), is in the northwestern portion of Maricopa County and covers a large 178 square miles.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Special-Purpose Districts, June 14, 2007
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Matthew Reining, San Francisco (1) 415-371-5044
Paul Dyson, San Francisco (1) 415-371-5079