Sarasota city bond rating upgraded

SARASOTA — The revenue bond rating for the city of Sarasota's utilities department was recently upgraded from AA- to AA, according to a release.

The upgrade, from Fitch Ratings, is an indication “the utilities department is financially healthy and carries a very low risk of default into the foreseeable future,” the statement from the city says. It also represents potential future savings on interest rates.

FitchRatings, according to the city, cited several factors that created a stable financial outlook for the utilities department, including scheduled declines in annual debt service this year and in 2016; increased liquidity due to the sale of 2,500 acres of city-owned property in 2011; and systematic, predicable rate increases.

“This is good news for the financial state of the city,” City Manager Tom Barwin says in the statement. “Our utilities debt burden is declining and our liquidity has greatly improved with the sale of the Hi-Hat Ranch property. Meanwhile, we're executing a significant long-range capital improvement program to continue providing excellent sewer and water service to our customers without increasing our debt.”