The City of McKinney has been elevated to an AAA rating from the Standard & Poor’s for its general obligation (GO) bonds. This is the highest rating issued by the S&P and places McKinney among the elite Texas cities. Only 20 cities in the state enjoy this rating.
“This is great news for the city and our residents, because it means more capital improvements with less taxpayers’ money. In addition, it serves as an independent assurance to the community that our fiscal and financial policies and management are among the best around,” said City Manager Jason Gray. “I credit the vision and leadership of the City Council and the great work done by our Finance Department for responsible fiscal practices to secure the highest rating.”
Standard & Poor’s cited the following reasons for the rating:
• Access and participation in the north-central Texas economy
• Deepening property tax base
• Very strong income levels
• Historically very strong reserve levels
Achieving the high rating gives the city access to lower interest rates, saving money for taxpayers. Proceeds from the GO bonds are generally used to make city-wide facility improvements to streets, drainage systems, parks and other public facilities.