The City of Roanoke’s bond rating of AA+/Aa2 by renowned credit rating agencies Fitch, Moody’s, and Standard and Poor’s Ratings, has been reaffirmed with a stable outlook. This impressive rating underscores Roanoke’s unwavering fiscal responsibility, highlighted by steady reserve levels, moderate debt levels, and prudent financial policies that include adopting balanced budgets without resorting to one-time measures or existing fund balances.
Bond ratings are pivotal in determining a municipality’s ability to secure favorable terms when borrowing funds through bond sales. In recognition of Roanoke’s exceptional ratings and robust economic indicators, the City successfully attracted 22 bids for the 2023 Series Bonds.
The increased number of bids played a crucial role in achieving a total interest cost (TIC) of 3.73%, a remarkable feat that is below the current average rate of 4.49%. Bond proceeds of $30,750,000.00 will be instrumental in advancing vital capital projects throughout the city, including the replacement of the Preston Park Elementary School, construction of a new Fire Station on Williamson Road, replacement of the Washington Park Swimming Pool, street paving and sidewalk improvements across the City, and other crucial initiatives that will continue to contribute to the city’s growth and quality of life.
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