Fitch Ratings, Inc. assigned a “AAA” long-term rating to the City of Carrollton for $195 million in outstanding general obligation (GO) bonds series 2020, improvement bonds series 2014, and improvement and refunding bonds series 2015, 2016, 2019, and 2021-2024. The ratings outlook is Stable.

Fitch also independently affirmed Carrollton’s “AAA” long-term rating for the City’s Issuer Default Rating (IDR). The ratings outlook is Stable.

“The analysts from Fitch conducted very thorough reviews, and I am pleased to report the agency confirmed the City’s ‘AAA’-Stable rating,” Carrollton Chief Financial Officer Diana Vaughn said. “This is literally the highest credit rating that can be achieved, and a ‘AAA’ rating is only possible through a team effort that starts with our elected officials, appointed leadership, and the City’s Finance Administration Department operating, together, to ensure City resources are managed effectively across 37.1 square miles of residences, businesses, and green space.”

Fitch affirms the ratings to reflect the City’s robust financial position, resulting from unrestricted general fund reserves equaling no less than 10 percent of spending, required for “AAA” financial resilience assessment based on high midrange inherent budgetary flexibility. Other metrics include a strong demographic and economical-level metrics at the 69th percentile and include the median household income metric and population with a bachelor’s degree or higher significantly above Fitch portfolio medians.

An additional contributing factor to the “AAA” rating is the City’s strong long-term liability burden in the 77th percentile, inclusive of the City’s upcoming $33 million GO bonds issuance. Fitch expects the long-term liability burden to remain stable given the manageable future debt plan offset by rapid principal amortization.

“Carrollton’s strong financial position is a reflection of the City’s stable leadership and is the result of the vision and support of the City Council over a long period of time,” Vaughn said. “We are very pleased that Fitch recognizes the importance of strong financial practices that have been verified as effective through consistently strong financial results even in times of economic downturn.”

The City’s GO bonds are issued on a pledge of the continued direct annual ad valorem tax levied − within the limits prescribed by law − on all taxable property within the City.

“An efficient and successfully-run City like Carrollton has a long-standing foundation of strong financial management, robust forecasting, and frequent budget monitoring,” Mayor Steve Babick said. “The City Council regularly reviews rolling capital improvement plans, budgetary status reports, and quarterly investment reports supplied by City management. These practices, along with fiscally responsible budgeting and strong financial leadership, allow the City of Carrollton to weather storms such as the pandemic in 2020 and ensure the City is primed for future growth.”

Fitch Ratings is a global leader in financial information services with operations in more than 30 countries. The company provides credit ratings, expert commentary, and market research.