National rating agency confirms Victoria's financial outlook is 'stable'
June 25, 2014 at 1:25 a.m.
BY THE NUMBERS
• $102.9 million in general obligation bonds
• $2.9 million in revenue bonds, Victoria Sales Tax Development Corporation
SOURCE: Fitch Ratings
The city of Victoria is on solid ground when it comes to its financial outlook, according to scores released from Fitch Ratings, a national rating agency.
Both the city's bonds, $102.9 million in general obligation and $2.9 million in revenue bonds, were rated AA, the third highest long-term rating.
Fitch called the city's outlook "stable" and said a potential $7 million debt this fall is "manageable."
The rating agency reported Victoria has a stable economy and tax base, is in a good financial position and has prudently budgeted sales tax.
"The city benefits from its position as an important regional service and supply center as well as continuing development across key taxable sectors and a fairly stable housing market," according to the report.
Fitch commended the management on its willingness to cut spending to maintain a balanced budget.
While sale tax revenue has leveled off after surging in recent years, city officials have used that revenue for non-recurring expenses. Sales tax is one of Victoria's main revenue sources.
"Overall, debt levels are moderate to high, but amortization is rapid, debt plans are manageable, and total carrying costs are moderate," according to the Fitch report.