City of Gig Harbor Bond Rating Increase

City of Gig Harbor Receives Standard and Poor’s AA- Rating
Bond rating increase reflects professional and conservative city finances


Gig Harbor, Wash. – March 3, 2010 – Today the City of Gig Harbor received word it has been upgraded to AA- long term rating by Standard and Poor’s. The rating increase will mean a significant saving over the years to the City and its rate payers – about $92,000 in interest savings over the life of the bonds.

The Standard and Poor’s Report justifies the rating upgrade on;
• Location in the economically diverse Pierce County service area with above –average income levels
• Track record of maintaining adequate debt service coverage (DSC) and good liquidity
• Implementation of rate increases
The reports says the foregoing strengths are partially offset by the city’s additional debt needs to fund its current capital improvement plan and near-term need to expand capacity in both its water and sewer system.
The stable outlook reflects Standard and Poor’s expectation that the city will maintain sufficient system net revenues to ensure good DSC and cash on hand; and the stability of the rating will depend on the city’s ability to pass along future rate increases and remain in line with its forecast.

“I would like to thank Finance Director Dave Rodenbach” said City Administrator Rob Karlinsey, “as well as City Engineer Steve Misiurak, and all their staff for their outstanding work in demonstrating professionally and conservatively run city finances and a well-planned capital program in order to make the case for a higher bond rating.”

The report from Standard and Poor’s is available at www.cityofgigharbor.net

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