Moody’s Investors Services and the Government Finance Officers Association have recognized the city of Peoria as one of the most fiscally sound cities in the valley.
Peoria has received an AAA bond rating and the Association’s Distinguished Budget Presentation Award.
“The AAA bond rating is the highest available, and I am delighted that Peoria has been recognized for its strong financial and economic performance,” said Mayor Cathy Carlat.
“Peoria’s discipline in adhering to its principles of sound financial management ensures transparency, protection and oversight. This memo is of great value to residents of Peoria as it allows us to take advantage of superior financial conditions by providing the infrastructure and amenities that make our city great.
In November, Moody’s Investors Services upgraded the city’s outstanding general bond ratings from Aa1 to AAA.
Moody’s cited “the material growth of Peoria’s tax base far above previous expectations and strong economic performance, as evidenced by population growth, employment expansion and substantial development” as the rationale for the upgrade. level.
Moody’s also noted the city’s prudent management and budgeting and sound financial policies which have resulted in a “substantial strengthening of the city’s financial position.”
On December 9, the City of Peoria closed its bond sale. Given the city’s AAA rating, Peoria issued $ 55.9 million in general bonds at an effective interest cost of 1.65%. This is the lowest interest rate on new bonds for Peoria in 20 years.
In addition, the City of Peoria received the Distinguished Budget Presentation Award for its fiscal year 2022 budget document. This is the 24th consecutive year that the city has received this award and the 29th time in total. According to the association, the award reflects the commitment of the governing body and staff to upholding the highest principles of government budgeting.
“The rating and assignment of bonds reflects the city’s commitment to prudent and responsible financial management and budgeting,” said City Manager Jeff Tyne.
“The City of Peoria has worked hard to consolidate its strong financial position. This, in turn, has enabled us to continuously deliver the highest quality municipal services to our residents and businesses.
Peoria residents and businesses benefit from the AAA bond rating in that it saves the city on interest charges when building important infrastructure such as streets, bridges, parks and public safety facilities.