Citing a strong local economy, sound financial performance and policies, and strong management, independent bond rating service Standard & Poor’s (S&P) recently upgraded Flower Mound’s General Obligation bond rating from AA+ to AAA.
Equipped with the highest possible bond rating, the town will be able to save millions of taxpayer dollars through lower interest rates, officials said this week.
“Flower Mound’s AAA bond rating is the result of many years of strong financial planning from both current and former Town staff as well as Council members,” said Flower Mound Mayor Tom Hayden. “This did not happen overnight and we appreciate everyone’s hard work and dedication that led us to this prestigious achievement. Having a prime bond rating will be instrumental as we move forward on exciting new projects for the community.”
According to S&P, the change reflects the “very strong” economy in Flower Mound, which is comprised of residential development and recent growth in the retail, restaurant, and manufacturing sectors. Additionally, the Town was credited for budgetary flexibility, with reserves above 15 percent of expenditures for the past several years.
“The Town has always been focused on providing a high quality of life for its residents,” said John L. Martin, Jr., Senior Vice President of Public Finance for Southwest Securities. “Flower Mound’s pursuit of landing high-end development to ensure a stable and growing tax base has been incredibly successful. In addition, a number of projects that have been in the works, but have been hung up for a variety of reasons, are now coming to fruition. These events assure its residents that they will continue to enjoy the quality of life they have come to expect at very reasonable tax rates. I believe this recent success put the Town over the top to achieve the AAA rating.”
Flower Mound last received an improved bond rating in 2008, when it was upgraded two steps from AA- to AA+.