Burbank, Glendale Receive AAA Credit RatingsFriday, May 17, 2013
A strong local economy and steady tax base growth contributed to the cities of Burbank and Glendale receiving an AAA credit rating from Standard & Poor’s Rating Service.
The AAA rating is the highest given out by Standard and Poor’s and reflects the ability of the two cities to meet financial commitments and is used in determining the interest rate paid on bond issues.
“This just reaffirms that, despite a tough economy, Burbank’s commitment to sound fiscal decisions has resulted in a robust economic outlook,” said Cindy Giraldo, the city's finance director, in a prepared statement.
In the report on Burbank, S&P’s noted that the city’s economic base was complemented by healthy growth in its finances due to a diverse general fund revenue stream of property tax, sales tax, utility users’ tax , other local taxes and various other sources.
“What we consider conservative financial management…enables the city to continue posting strong fund balances,” the ratings agency said in its report.
The Glendale report highlighted low debt levels, good wealth and income levels, per capita retail sales higher than the L.A. County average and continued growth in its assessed valuation.
“The city’s financial performance will likely remain strong, based on a diverse and broad local economy as well as sound financial management policies and practices,” S&P said in its report.