The city of Richardson maintained the highest possible bond rating with two credit rating firms, Moody’s and Standard & Poor’s.

City officials say that the AAA rating from Standard & Poor’s and the AAA rating from Moody’s will allow for the sale of bonds at the lowest possible interest rates and reflect the city’s creditworthiness. According to a city news release, the city is preparing to issue a total of $88.5 million in general obligation and certificate of obligation bonds.

What you need to know

The bonds will be used to finance several public projects, including those for public facilities, water and sewer infrastructure needs, and new equipment for various city departments.

Per the news release, $67.5 million in general obligation bonds will be used to finance various street projects, municipal public buildings, parks, sidewalks and drainage projects, which were included in both the 2021 and 2023 bond elections. The sale of certificates of obligation worth $21 million will be used for several projects, as previously reported by Community Impact:
  • $3 million for library renovations
  • $1.61 million to pay for a fire engine pumper truck and an ambulance
  • $1.65 million for container equipment and five trash trucks
  • $14.7 million for water and sewer projects, including a water line, a lift station and other infrastructure replacements
“The bond sales allow the city to address immediate needs and manage financial resources in a way that balances current obligations with future benefits for the benefit of the community,” City Manager Don Magner said.

Digging deeper

The ratings given to the city extend a long streak of receiving top marks for credit worthiness, according to the news release. Richardson has been rated AAA by Standard & Poor’s for 17 consecutive years and AAA by Moody’s for 15 straight years.

“Triple A status provides third-party assurance the city meets stringent fiscal performance and control standards across multiple factors, including financial stability, capacity to fulfill debt obligations and economic conditions,” Magner said. “This allows them to save money as bonds are sold to fund large public projects, like roads, water mains, fire trucks and other infrastructure, and equipment purchases.”

What else?

An order period for the bonds is expected to open April 22 with priority given to individual investors and Richardson residents, according to a separate news release. Bonds cannot be purchased directly from the city and will be sold in $5,000 increments.

Individuals interested in purchasing bonds must have a brokerage account with an existing firm or one of the three firms participating in the bond sale.