Jacksonville officials are wearing smiles today, as the city announces snagging dual "AA" ratings on its 2025 special revenue bonds from S&P Global and Kroll Bond Rating Agency (KRBA), a financial accolade coming hot on the heels of an "AA+" affirmation by Fitch Ratings earlier this month. In the dry world of municipal finance, these ratings are analogous to a badge of honor, signaling the city's fiscal soundness and influencing how much it will cost the city—and by extension, its taxpayers—to borrow money.
Mayor Donna Deegan, pleased with the financial accolades, told the City of Jacksonville, "We are grateful that S&P and Kroll have joined Fitch in recognizing the significant progress our city is making." Despite the misplaced modifier that suggests the ratings themselves contribute to city progress, her message is clear: Jacksonville is being rewarded for its fiscal prudence and economic strategy. It's the second consecutive year the city scored the top tier ratings, a fact that underscores consistency alongside financial health.
The foundation of these stellar ratings is multifaceted. They reflect the city's robust financials, diverse economy, and the strategic moves it has made toward fostering growth and resilience. S&P Global highlighted Jacksonville's economic muscle, noting the healthy employment gains and investment the city is pulling in. With over 15% population growth in the past decade and economic output leapfrogging national averages, Jacksonville is flexing its financial stability through strategic land use and bolstering its resilience against climate and weather risks. This includes, among other strategies, buying out properties in flood-prone hotspots, as per a report wrapped into the financial forecasting accolades.
The narrative continues favorably in the KRBA report. As they put it, Jacksonville boasts a sterling economic base, rapid population growth, and effective governance, with reserves "far exceed the City's Reserve Policy targets of 5–7% for operating reserves and 7–10% for emergency reserves," as cited on City of Jacksonville's official website.
