Santa Fe's "sound financial" and "strong budget" management are part of what lead to "AA+" and "AA" ratings announced last week, two city officials said in a recent news release.
The city is pleased by the AA+ rating by Fitch Ratings and AA rating by S&P Global Ratings, especially for Santa Fe's 2021 series $13.5 million subordinate lien gross receipts tax refunding bonds, Mayor Alan Webber said.
"They signify our continuing commitment to sound financial management that keeps our outstanding debt at reasonable levels with lower interest rates," Webber said in a city news release issued Tuesday, Nov. 9. "By refunding these bonds, we can save the City of Santa Fe an estimated $1.5 million in interest over the next five years. And that's good news for our taxpayers!"
Santa Fe Financial Department Director Mary McCoy
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Webber was re-elected to a second term during the General Election earlier this month, taking 55% of the vote and soundly defeating challengers Joanne Coppler and Alexis Martinez Johnson.
Santa Fe Financial Department Director Mary McCoy, in the same news release, offered similar observations, with a nod toward how the city has conducted its financial business in the midst of the still ongoing pandemic.
"We are pleased to receive these very positive bond ratings and recognition from both S&P and Fitch of the City's strong budget management and good fiscal management practices during the COVID-19 pandemic," McCoy said. "These ratings are a testament to our city's strong financial health, and build on Mayor Webber's commitment to financial responsibility. The savings from the refinancing will allow us to continue investments in programs that improve Santa Fe's future."
S&P backed up observations about the city's financial strength.
"Santa Fe's good management practices support stable financial reserves and balanced operations," S&P said in the city's news release, also noting its rating for the city reflects "strong-to-very strong debt service coverage supported by a strong economy."
Santa Fe's revenue collections in the latter half of fiscal the current fiscal year "reflected steady increases which are expected to continue into fiscal 2022," S&P said.
In its own news release issued Nov. 4, Fitch Ratings affirmed it also had rated Santa Fe's issuer default rating and its $21.7 million in general obligation bonds, $56.7 million in senior lien GRT revenue bonds and $31.4 million in subordinate lien GRT revenue bonds as AA+.
Fitch also said that Santa Fe's rating outlook is stable.
In October, the city announced it would receive $15 million in federal American Rescue Plan Act money over the next three years to help in local COVID recovery.