City of Atascadero receives AA- rating for lease revenue bonds
– Standard & Poor’s Global Ratings has assigned a long-term credit rating of AA- to the Atascadero Public Financing Authority’s 2025A Lease Revenue Bonds, according to a press release from the City of Atascadero. The outlook is stable.
According to S&P Global Ratings, the stable outlook reflects the city’s above-average economic metrics, mostly positive financial performance, ample reserve position, and above-average financial management policies and practices.
The rating agency evaluated management policies and practices, increasing secured assessed valuations, local economic growth, diversity in the tax base, operating results, debt and liability profiles, and environmental, social, and governance factors.
The report stated, “the city’s main revenue sources will remain steady, providing balanced general fund operating results. We also expect the city will maintain its available reserve position well above 20% of operating revenues, given its minimum reserve policy, budgetary practices, and long-term financial planning that extend seven years, providing the city with time to make any appropriate budget adjustments as needed.”
Mayor Charles Bourbeau said, “We are proud to receive an AA- rating from S&P Global Ratings, which reflects the City of Atascadero’s long-standing commitment to sound financial management, strategic planning, and responsible stewardship of public resources. This strong rating will help us save money on borrowing costs and invest in critical public safety infrastructure that will serve our community for generations to come.”
City Manager Jim Lewis said, “This rating is a direct result of the City Council’s fiscal discipline, our staff’s dedication to long-term planning, and the ongoing support of our community. With these bond proceeds, we can move forward on essential upgrades to our fire and police facilities, ensuring they are safe, modern, and resilient.”
Bond proceeds will be used to replace Fire Station No. 1 with a newly constructed, approximately 17,000-square-foot facility that will include an attached Emergency Operations Center. The project also includes the renovation and modernization of Fire Station No. 2 to meet safety standards, codes, and operational requirements.
In addition, improvements to the city’s Police Headquarters will include upgraded security systems, refreshed interior finishes, restroom and locker room upgrades, and the construction of a new detached dispatch building of about 1,112 square feet.
Officials said the rating will reduce borrowing costs and reflects strengthening economic conditions and strong city leadership.
For the full S&P analysis, visit www.atascadero.org.
