A city’s bond rating is a measure of its credit quality, which is the ability to pay a bond's principal and interest in a timely fashion. A higher bond rating generally means the city can borrow at a lower interest rate, saving taxpayers millions of dollars in the process.
This rating reflects Jacksonville’s solid financial track record and the expectations that available reserves will equal at least 10% of spending on a sustained basis. The rating is also attributed to the city’s population trends, unemployment metrics, and role as an economic anchor for Northeast Florida.
“We are grateful that Fitch recognizes the significant progress our city is making,” said Jacksonville Mayor Donna Deegan. “This year’s rating marks the second year in a row that we have received an AA+ rating for this critical bond that supports our infrastructure projects. It exemplifies Jacksonville’s strong financial health and reflects on what’s possible when we combine bold ideas with fiscal responsibility to move our city forward.”
1. Fitch noted Jacksonville’s fast population growth. Based on the median of 10-year annual percentage change in population, Fitch rated Jacksonville’s population trend as “Strong.” In other words, the city’s population is of sufficient size and the economy is diversified enough to qualify for their highest overall size/diversification category.
2. Fitch highlighted the city’s low unemployment. According to the latest job report from the U.S. Bureau of Labor Statistics, Jacksonville’s 3.6% unemployment rate is below the state and national average.
3. Fitch believes that Jacksonville anchors the Northeast Florida economy. They provided multiple examples:
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- Jacksonville has a large and expanding healthcare industry, with UF expanding its investment in the city not only in healthcare, but also in a graduate campus that will offer degrees in AI, engineering, biomedical and computer sciences.
- Jacksonville International Airport and the Jacksonville Port Authority facilitate connectivity with Latin America, the Caribbean, and other global markets.
- NAS Jacksonville and NAS Mayport collectively employ 41,000 active-duty and civilian workers.
Additionally, Fitch upgraded the outstanding Better Jacksonville sales tax revenue bonds from “AA-“ to “A+,” and affirmed an “AA+:” rating for four other bond categories.