Miami Beach, FL – Standards & Poor’s (S&P), one of the nation’s bond-rating services, upgraded the City's rating on its bonds from an A to an A+. This is a significant accomplishment for the City of Miami Beach and reflects continuing efforts to improve its financial position. During Fiscal Year 2001, the City received an A1 rating from Moody's. Both ratings are the highest to be achieved in the City's history.
"I am pleased to see such strong fiscal confidence in Miami Beach during a time when the country’s economy is experiencing difficulties," said Miami Beach Mayor David
Dermer.
Miami Beach Commissioner Jose Smith, chairperson of the City’s Finance and Citywide Projects Committee, said, "This bond upgrade is especially significant in light of the current economic uncertainties that many local and state governments are facing. For Wall Street analysts to send this kind of positive message at this time demonstrate their confidence in us, our City Manager, and in Miami Beach’s future."
The rating report indicates the upgrade was the result of a number of factors which included sustained strong financial performance bolstered by long-term planning and formal fiscal policies. Standard and Poor’s advises that during the year following September 11, most states and many cities experienced financial difficulties, especially those whose economies are largely dependent on tourism revenues. Further, they acknowledged that the City of Miami Beach successfully navigated those challenging economic times because of prudent fiscal policy and management, diversification of the economic base and continued growth.
"Through prudent fiscal management and aggressive efforts after 9/11, we have been able to strengthen our financial condition and position ourselves to grow with the economy. We’ve diversified our economy, maintained our service levels, and continue with an unprecedented $400 million capital improvement program citywide," said Miami Beach City Manager Jorge M. Gonzalez.
Particular mention was made of the City’s contingency fund for emergencies along with the strength of reserves in City’s enterprise funds. It was also noted that the City hosts high profile events, such as MTV’s inaugural Latin America Video Music Awards, which should continue to positively impact hotel occupancy rates and prices, resort tax revenues and overall tourism trends. Additionally, S&P’s report reflects the City’s strong ongoing economic growth and diversification of its tax base.