PALMETTO BAY, FL, AUGUST 8, 2016 -
The Village of Palmetto Bay is proud to announce that S&P Global Ratings upgraded the Village's rating from "AA" to "AA+" on non-ad valorem bonds issued by Florida Municipal Loan Council.
"The upgrade reflects the village's strong performance, strong management, and maintenance of an unassigned fund balance exceeding 75% over the past three years," indicated S&P Global Ratings in its Rating Letter and Report to the Village.
"The "AA+" rating reflects our view of:
- Very strong economy, with access to a broad and diverse metropolitan statistical area (MSA);
- Strong management, with good financial policies and practices under our Financial Management Assessment methodology;
- Strong budgetary performance, with operating surpluses in the general fund and at the total governmental fund level in fiscal 2015;
- Very strong budgetary flexibility, with a high available fund balance in fiscal 2015 of 98% of operating expenditures;
- Very strong liquidity, with total government available cash at 114.4% of total governmental fund expenditures and 12.6x governmental debt service, and access to external liquidity we consider strong;
- Adequate debt and contingent liability position, with debt service carrying charges at 9.1% of expenditures and net direct debt that is 95.0% of total governmental fund revenue, as well as low overall net debt; and
- Strong institutional framework score"
In the Rating Letter, S&P Global Ratings explains that the non-ad valorem bonds are secured by a loan agreement between the Council and the Village. Supporting the loan "are the village's covenant to budget and appropriate non-ad valorem, legally available revenues, by budget amendment if necessary."
In what is still an uncertain local economy, the upgrade is a testament of Palmetto Bay's commitment to financial strength and stability. We are very excited by this news and thank the Village Council, Village Staff and our Village residents for your continued commitment to this organization and this community. For a copy of the Rating Letter and Report please visit the Village of Palmetto Bay official website.