Press Release 21-42 (08-18-21) AAA Rating

08-18-21

21-42

Fitch Assigns AAA Rating to the City of Marco Island Fitch Ratings has assigned the City of Marco Island a ‘AAA’ Long-Term Issuer Default Rating (IDR). The AAA IDR reflects the City’s consistent maintenance of healthy general fund reserves and a low long-term liability burden. Fitch acknowledged that the City’s general fund unrestricted fund balance has consistently exceeded the City’s reserve policy of 25% of total spending. Fitch noted that the City’s consistent maintenance of healthy reserve balances reflects prudent fiscal management.

Fitch believes the City’s natural revenue growth will continue to outpace inflation, supported by population gains and continued expansion in taxable assessed valuations. City staff actively manage spending and budget conservatively with results that invariably outperform the budget.

The Fitch Rating was derived from $11,335,000 public improvement revenue bonds scheduled for a competitive sale on August 31, 2021. The bond proceeds will be used to finance the cost of capital improvement projects including Fire Station 50 and Veterans’ Community Park. The voter-approved Collier County half-cent sales tax revenue accounts for 74% of total pledged revenues for the bonds. The City does not have any additional debt planned, and it continues to fund capital needs on a pay-as-you-go basis. The City is projecting positive results for FY2021 with an operating surplus and an addition to unrestricted general fund balance.

The City Council and City Manager congratulate the City’s Finance team for this outstanding accomplishment. The AAA rating reflects the values of the City and its residents, and is in keeping with the City Council’s goal of providing City services in a cost-effective and efficient manner.

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