Harriss credited for improvement in bond ratings

The City of St. Augustine informed Historic City News local reporters that the city is “in strong financial shape” according to the rating service that guides municipal bond investments.

“Fitch Rating Service has increased the city’s ratings,” Chief Administrative Officer Tim Burchfield reported to city commissioners last week. “Our water and sewer bond rating climbed two steps, from A to AA-minus, and our General Obligation Bond rating one step, from A-plus to AA-minus.”

Burchfield explained that these ratings are the “underlying ratings” — meaning the rating agency views the city as a quality organization and a solid investment.

“The City always buys up the ratings to AAA when issuing bonds, making the bonds even more desirable on the open market,” Burchfield said. “The increase in the underlying ratings means the cost of buying up the rating will be less expensive to the City in the future.”

At their Monday night meeting, commissioners gave credit to outgoing City Manager Bill Harriss, an accountant by training, for raising the ratings from “less-than-junk-bond status” to the current, strong position during his 25 years with the city; where he began as Financial Services Director in 1985.