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Tigard Improves Bond Rating

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	City of Tigard 13125 SW Hall Blvd. Tigard, Oregon 97223	Press Release January 20, 2011
For Immediate Release
Contact:	Toby LaFrance Finance and Information Services Director City of Tigard 503-718-2406 toby@tigard-or.gov

Tigard Improves Bond Rating
The City of Tigard announced that their bond rating has improved. A city's bond rating is similar to an individual's credit score. The impact of this improved rating will be a lower interest rate on the $17 million parks bond that was recently approved by Tigard voters on November 2, 2010. Tigard's rating by Moody's increased from A1 to Aa2. For the first time, Tigard received a rating by Standard and Poor's and was given an AA rating, which is equal to the Moody's rating.

"A City's bond rating is the only independent third-party 'report card' on a city's finances," said Craig Prosser, Tigard City Manager. "To receive an increase in our rating in this economy recognizes the City's solid fiscal policy, direction, and management practices."

In the report from Standard and Poor's, the rating agency's rationale specifically references the City's "strong financial policies and practices". Last year, in the face of slowing revenues due to the recession, Tigard implemented a 6 percent budget cut. The resolve to make necessary fiscal decisions is also highlighted in the report when Standard and Poor's discusses the City's "willingness to adjust expenditures to achieve balanced operations following a recession-led revenue slowdown."

"Just like a person's credit rating, it has taken years of sound decisions to raise Tigard's bond rating," stated Tigard Mayor Craig Dirksen. "We need to continue our practices, because it only takes one bad decision to lose that rating."

According to Toby LaFrance, Tigard's Finance and Information Services Director, the increased bond rating is worth about a half a percentage point on the interest paid on the bond. "That works out to be a savings of $1.1 million over the life of the $17 million parks bond. Since it is a general obligation bond, and the City only levies the amount of the bond payments, that is money in the pockets of Tigard property owners."

"The voters of Tigard passed this Parks Bond and I'm glad that we can repay the trust they put in us," Mayor Dirksen stated.