City receives AA+ rating from Standard & Poor’s

  Everett continues to be financially solvent as the city was recently awarded an AA+ long-term rating and a short-term rating of SP-1 from Standard & Poor’s (S&P) Global Ratings. According to S&P, SP-1 is the highest attainable short-term rating. The AA+ rating, which the city has received in prior years, is the second-highest long-term rating.

  “I am proud of the ratings that the city of Everett earned from S&P,” said Mayor Carlo DeMaria. “The rating assignments and affirmation show our strong financial stability during these unprecedented times. These ratings confirm our continued strong economic position.”

  After reviewing Everett’s financials in October 2020, S&P announced that the city’s figures were “better than expected.” The agency also noted that during the past three years Everett has established a “record of robust financial performance and fund balance levels.”

  “The stable outlook reflects our view of the city’s very strong reserves, conservative budgeting and strong financial management, which we expect will provide an adequate cushion to absorb unexpected revenue decreases or economic stagnation due to an uncertain economic recovery or COVID-19-related events,” said S&P representatives.

  According to city records and annual reports from Hilltop Securities, the city’s Free Cash Account increased dramatically from $3.5 million in 2011 to $10.6 million in 2020. Everett’s Free Cash balance reached its peak of $14.3 million in 2019.

  The city’s Stabilization Account held a balance of $9.2 million in 2011. That balance peaked at $21.1 million in 2017 before sliding back to $9.5 million in 2020.

  In addition, DeMaria announced that the city has selected Raymond James & Associates, Inc. for a $13.4 million 20-year tax-exempt bond issue and a $10.4 million 20-year taxable bond issue. The company offers an average interest rate of 1.637 percent on the tax-exempt bonds and an average interest rate of 2.568 percent on the taxable bonds.