Mohave Today

Chandler, Arizona has become the first municipality in the state to receive a AAA bond rating on its Excise Tax Revenue (ETRO) bonds. The city was recently rated by all three rating agencies and received the highest AAA/Aaa ratings on its General Obligation (GO) bonds as well. This achievement is a testament to Chandler's excellent financial decisions and leadership over the years.

Dawn Lang, the city's Deputy City Manager and Chief Financial Officer, expressed her excitement over this historic achievement. She stated, "This rating is a direct result of Chandler's excellent financial decisions and leadership over the past several years and translates to lower interest rates on the debt, thereby benefitting taxpayers."

Moody's Investors Service, one of the rating agencies, cited Chandler's low and manageable debt burden and its rapidly decreasing pension liabilities as reasons for the upgraded rating. The city's accelerated pension pay down plan has contributed to the improvement in its financial standing. Additionally, the sustained growth in excise tax revenue, driven by robust economic growth, has further strengthened Chandler's bond rating.

The city recently sold new GO bonds in the amount of $118.714 million and new ETROs in the amount of $75.116 million. The high bond ratings resulted in strong demand from investors, leading to low interest rates on both transactions. The funds raised from the bond sales will be used to improve Chandler's facilities, parks, streets, and utility infrastructure.

Chandler's achievement in receiving a AAA bond rating for its ETRO bonds is a significant milestone for the city. It reflects the city's commitment to sound financial management and its ability to attract investors. With this rating, Chandler is positioned to further enhance its economic development and continue to provide quality services to its residents.

Sources:

- Dawn Lang, Deputy City Manager and Chief Financial Officer, Chandler

- Moody's Investors Service

Contact:

Official Website of Chandler, Arizona

480-782-2000

Click this link to access more information: https://www.chandleraz.gov/news-center/chandler-first-arizona-city-receive-aaa-bond-rating-excise-tax-revenue-bonds