There's a sigh of relief at City Hall, after Standard & Poor’s announced it was reaffirming the City of San Antonio’s AAA bond rating, 1200 WOAI news reports.
That is the highest bond rating that a public or private entity can attain, and means that the city will pay the lowest possible interest rates on the bonds and notes it sells, on the understanding that its chances of late payment or default is low.
Because of an AAA bond rating, more money from bond issues goes to the project themselves, and less goes to interest paid to bondholders, boosting the scope of long term city spending.
"This is further evidence that San Antonio is a well-managed city on the rise with a low cost of doing business," Mayor Julian Castro said.
An AAA bond rating is particularly important at a time when city finances nationwide are under scrutiny, following high profile problems being faced by cities like Detroit.
San Antonio is the only major city in the USA which has a coveted AAA rating from all three of the major bond rating agencies.
There had been some concern at City Hall that the AAA bond rating might be in jeopardy due to lower than desired city reserve balances, and the 'legacy cost' issues which are facing all cities. There are worries that the long term costs of pensions and health care for retires could overwhelm the city's budget.
A commission headed by former City Councilman Reed Williams is studying the best course of action to take regarding legacy costs and is expected to issue a report in February.