Standard & Poor’s Global Ratings has assigned its “A” long-term rating and an underlying outlook of stable for the city of Chowchilla’s taxable lease revenue bonds and the direct pay subsidy new clean renewable energy bonds.
S&P based this rating and outlook on the city’s strong management, strong budgetary performance, very strong budgetary flexibility, very strong liquidity, and a very weak debt and contingent liability position, according to city administrator Brian Haddix.
“When I came onto the council two years ago, we confronted prior management practices head on with a determination that it would not be business as usual … We have strengthened our debt and investment policies, maintained strong fiscal reserves, and built into our budget a five year forecast,” said Chowchilla Mayor Mary Gaumnitz.
The S&P Global Rating, announced in late June, focused on the city of Chowchilla’s General Fund, of which 42 percent is dedicated to public safety with the next largest portion supporting the city’s Public Works Department. By having a strong rating for the General Fund, the city can borrow money at a lower overall interest rate.