The City of Watertown is pleased to announce that it has received a AAA bond rating – the highest possible rating – by Standard & Poor’s (S&P). This elite rating reflects the City’s exceptional fiscal management, conservative planning, and strong economic outlook as Watertown continues to move forward with large-scale projects to best serve the community.

The City of Watertown has been rated AAA since 2013, and like most municipalities, Watertown relies, in part, on borrowing to finance the cost of large capital projects with an extended lifespan, such as the new high school. When a City borrows, credit rating agencies review and assign their ratings to indicate a recipient’s creditworthiness. When assigning these ratings to a government entity, S&P assesses the community’s economic health, financial performance, budget management, reserves, debt load, and liabilities, to determine the likelihood that the government will be able to repay its debts on time. It was the conclusion of this review for which the City of Watertown was assigned the highest possible rating available, signaling exceptional budgeting practices.

“Each year when we present our budget goals to the City Council and community, we include our conservative but sound budget strategies,” said Watertown City Manager George Proakis, “chief among them is the goal of providing the highest level of services possible with the most efficient utilization of resources, and to ensure sound finance management and fiscal stability. This rating is a sign that we are not only succeeding, but exceeding in doing so”.

Recipients of AAA ratings are often met with lower interest rates when borrowing, a significant benefit to not only the City, but residents as well. The S&P’s review of Watertown comes at a time when the City borrowed its final $50 million for the on-budget and on-schedule Watertown High School building project this year. With this AAA rating, the City will receive a more favorable interest rate, making repayments more manageable, saving Watertown taxpayers money, and allowing for the continued investment in a wide variety of programs and services that further meet the community’s needs. When comparing this borrowing to a AA rating, interest costs for the high school building project will total about $4.6 million less over the 30-year repayment period due to Watertown’s AAA rating.

City Council President Mark Sideris adds “This is an achievement that I am very proud of, being able to maintain the rating especially during this uncertain time, not only for what it means for our Council and the City’s Administration, but also what it means for this community, our residents, and our businesses, present and future. This is going to only help our City continue to invest in what is most important to them”.

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