The City of Sandy Springs Achieves Moody’s Aaa Credit Rating for GO-Backed Revenue Bonds

The City of Sandy Springs is pleased to announce that Moody’s Ratings (Moody’s) has assigned a Aaa rating to its proposed $48.5 million Revenue Bonds (City of Sandy Springs Fire Station Project), Series 2025. The bonds are being issued through the City of Sandy Springs Public Facilities Authority, and the issuance includes a new Fire Station #4 within the City limits, a replacement Fire Station #1, and an addition to Fire Station #3.  

“Our strong credit rating reflects the City’s solid financial management and directly benefits our residents by reducing borrowing costs for vital infrastructure projects,” said Mayor Rusty Paul. “This means we can invest more in public safety and community services without placing additional strain on taxpayers. It’s a strong vote of confidence in the City’s future and our commitment to responsible governance."

Moody’s maintains a Aaa issuer rating on the city and a Aaa on its outstanding general obligation limited tax (GOLT) backed debt. The city will have about $248 million of parity bonds outstanding following the current issuance.

“This notable distinction reflects our city’s ongoing commitment to fiscal responsibility, prudent budget management and long-term financial stewardship,” said City Manager Eden Freeman. “Achieving, and maintaining, a Aaa bond rating requires a deep and sustained commitment to excellence at every level of our organization.”

David Cheatwood and Walter Goldsmith with First Tryon Advisors are serving as the City’s Financial Advisors for this transaction. Sandy Springs first achieved its Aaa bond rating status in 2015 and was affirmed in 2020, reflecting its strong tax base, healthy reserves, and manageable fixed costs.

RATINGS RATIONALE

The Aaa issuer rating reflects the city’s affluent tax base that is experiencing steady growth and will continue to benefit from its central location within Metro Atlanta, the presence of several major corporate headquarters and offices, and ongoing redevelopment activity. The city’s strong finances are also a key component of the Aaa rating and are characterized by consistently healthy reserves (available fund balance is routinely above 60% of revenue), regularly balanced operations, and organic revenue growth. The economic momentum and strong budget management help mitigate the city’s somewhat restrictive revenue raising flexibility as its property tax millage is currently at the maximum allowed by the city charter and raising the millage cap would require voter approval. The rating also incorporates the city’s relatively low long-term liabilities and a significant amount of revenue that is dedicated to future capital needs.

The Aaa rating on the revenue bonds is placed at the same level as the issuer rating because the city has pledged (via an intergovernmental agreement with the issuing authority) to make lease payments sufficient to cover debt service. The city’s pledge is backed by its full faith and credit and taxing powers. Under the lease agreement, the city has agreed to levy an annual tax on all taxable property at a rate not to exceed 4.731 mills. Lease payments are not subject to annual appropriation.