Burbank received a “AAA” credit rating this month from Standard & Poor’s, which cited the city’s “strong local economy and steady tax base growth.”
City officials were pleased with the score, which is the highest rating possible from Wall Street’s biggest credit rating firm.
The credit rating helps determine the interest rate the city must pay on bonds, officials said. Burbank’s high rating means the cost of borrowing for the city is lower.
“This just reaffirms that, despite a tough economy, Burbank’s commitment to sound fiscal decisions has resulted in a robust economic outlook,” Financial Services Director Cindy Giraldo said in a statement.
According to the firm’s report, the city’s management practices are “strong, well embedded and likely sustainable.”
The city’s assessed valuation has increased by 48% in the last decade or so, standing at $18.3 billion this year, according to the S&P report.
The firm also called the city’s debt burden “moderate” at $3,722 per capita. Nearly half of its debt burden is related to former redevelopment tax allocation bonds, according to the report.