It was announced in a news release issued by Fontana that the city has seen an improvement in its credit and bond ratings, indicating that the investing community has restored confidence in the city’s financial health.
In addition to the company’s issuer credit rating being increased from AA- to AA, Standard & Poor’s has also enhanced the company’s lease revenue bond rating from AA- to A+, as previously reported by Fontana. According to the news release, improved credit and bond ratings reflect the city’s ability to meet its financial obligations, which can result in lower interest rates, lower debt issuance costs, and the attraction of a larger range of possible investors in the future.
According to Mayor Acquanetta Warren, the results are a reflection of the stringent financial procedures and policies that have been put in place by the City Council and our management team over the years.
“This is the first time we have put together a two-year budget,” the governor says, “which not only saves us time but also encourages openness, accountability, and stability in our financial operations.”
In its presentation to S&P, the City made several noteworthy points, some of which are listed below:
The entire assessed valuation of the city is $24 billion as of fiscal year 2022, suggesting that the city’s property tax base is growing at a healthy rate. This represents a 6.6% increase over the previous year’s figure. This achievement has been made possible by Fontana’s rapid business and residential development, which are just a few of the factors that have played a role.
One of the primary reasons for the city’s capacity to withstand the COVID-19 crisis has been credited to its supply chain and logistics, as well as to its healthcare system. The combined workforce of these industries totals more than 21,000 individuals.
Financial norms and regulations have been established by the city in order to foster fiscal discipline as well as balanced economic growth. According to city financial papers, the city had $18.9 million in contingency reserves, $8.5 million in economic uncertainty reserves, and $5.9 million in PERS retirement funds on hand as of June 30, 2018.
After receiving word of the pandemic catastrophe in early 2020, the City Council moved quickly to address the situation. The council urged to the mayor that all government entities keep their expenditures to a minimum. Because of the support provided by COVID-19 disaster relief funds and other initiatives, the city was able to end fiscal year 2020-21 with a surplus in hand.
“This is without a doubt a huge achievement for the municipality,” says City Manager Mark Denny. In the words of the mayor, “It demonstrates the City’s excellent financial management as well as the effective implementation of the financial policies adopted by the City Council.”
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