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CITY OF CIBOLO RECEIVES S&P GLOBAL RATING OUTLOOK UPGRADE TO AA POSITIVE


The City of Cibolo proudly announces its recent achievement of receiving a credit outlook upgrade by Standard and Poor’s Global Ratings from AA Stable to AA Positive, affirming the city's robust economic foundation, prudent financial management, and promising outlook for future growth and development. The upgrade in its credit rating outlook signifies that S&P could raise the rating if the City’s strong economic expansion results in improved wealth and income metrics.

The City’s strong credit rating and upgraded rating outlooks mean the City can continue to sell debt at lower interest rates for major expenses, including roads, facilities, and vehicles.

The City of Cibolo experienced strong economic and population growth in the past decade, benefiting from its location along Interstate 10 and I-35 and about 13 miles northeast of downtown San Antonio. This economic activity has fueled double-digit assessed value (AV) and sales tax revenue growth and aided the city in achieving consistently strong budgetary performance.

"Achieving consistently high credit ratings enables us to save significant amounts on both long-term and short-term debt, empowering us to redirect those funds towards critical infrastructure projects,” said Mayor Mark Allen. “By minimizing interest payments, we can channel resources directly towards serving our citizens, enhancing their quality of life, and fostering community development.”

According to the report, the rating also reflects their view of the city's:

  • Improved income and property wealth indicators, with a property tax base that is primarily residential but rapidly growing commercial and industrial sector;
  • Strong budgetary performance and maintenance of very strong available reserves and liquidity, which we expect the city will continue; and
  • Good financial management policies and practices and a strong institutional framework score.

“Recently, the City issued bids for the 2024 Certificate of Obligations bonds in the amount of $8,485,000 to support our capital improvement projects, securing competitive interest rate of 3.276%. This achievement stands as yet another testament to our cautious budgeting process and strong financial management. I am appreciative of Anna Miranda’s, Finance Director, management of the City’s day-to-day financial system,” said City Manager Wayne Reed.

Within the next year, the City will initiate a retail market study, a Downtown Master Plan, and infrastructure improvements to further the City Council’s Strategic Plan to promote intentional community development and high-quality growth.