Friday 10th of July 2020 06:23:05 AM GMT

City of Oakland’s Credit Rating Upgraded To Aa1, Highest In History

City of OaklandCity of Oakland
(Last Updated On: February 11, 2020)

Oakland’s ratings are at their highest in City’s history; second-highest rating available; analysts call out the City’s strong financial position, good fiscal policies and practices, and “experienced, prudent management team”

Oakland, CA – The City of Oakland’s credit ratings were upgraded to Aa1 with “stable outlook” by credit rating agency Moody’s, and affirmed at AA with an upgraded outlook from “stable” to “positive” by Standard and Poor’s (“S&P”). Oakland is one of only 14 cities in California (of 482) to be rated Aa1 by Moody’s.

The Moody’s upgrade recognizes the City’s strengthened fiscal position and robust financial policies, participation in the strong Bay Area economy, and prudent management. The analysis noted: “The city’s current, very strong fiscal position, combined with strengthened fiscal policies and experienced, prudent management, have positioned the city well for its clear fiscal and social challenges, including increasing pension costs, sharply increased homelessness and declining housing affordability.”

Looking ahead, Moody’s stated, “We expect that the city will maintain its strong financial position given management’s commitment to strategic, long-term financial planning that is supported by prudent fiscal policies.” They also positively note that “nearly 80% of all outstanding debt will retire within the next 10 years.”

S&P’s ratings also reflected their assessment of the city’s very strong economy; strong management, with good financial policies and practices; and strong budgetary performance. Analysts concluded: “We anticipate that economic growth and a cautious approach to budgeting will enable the city to continue to add to reserves while managing the challenges of addressing community service priorities amid higher pension and Other Post-Employment Benefits (OPEB) contribution requirements, and catching up on deferred maintenance.”

“I’m grateful the rating agencies have recognized Oakland’s improved commitment to prudent financial policies and sound fiscal management,” said Oakland Mayor Libby Schaaf. “Since the Great Recession, this Administration and the City Council have continued to invest in critical services—like homelessness and illegal dumping—while more aggressively addressing our long-term financial health. Our recent acts like establishing a “vital services rainy day fund,” paying down unfunded liabilities, and addressing our deferred maintenance backlog via initiatives like the Great Pave will save the city money today, and ensure future generations inherit a stronger and more stable city government.”

For more than a decade, City leadership has focused on strengthening the City’s financial health. The City Council has adopted policies that fund operating reserves, created a “rainy day fund,” reduced retiree health care costs (Other Post-Employment Benefit/OPEB), and set aside resources to fund long-term OPEB liabilities. S&P notes that these financial policies position the City to better manage recession risks. The rating agencies also note the City’s challenges of increasing pension and OPEB costs, increased homelessness, declining housing affordability, and deferred maintenance backlog.

City Administrator Sabrina Landreth expressed appreciation for Oakland’s public safety employee unions—the Oakland Police Officers Association, the International Association of Firefighters (Local 55)—who partnered with the Administration last year to address Oakland’s long-term financial stability by agreeing to place caps on the amount the City contributes for retiree health care benefits. These retiree medical caps represent significant relief to the City in beginning to address the growing and unfunded liabilities associated with providing health care to employees after they retire. These reforms will reduce the unfunded liability by $175 million in the near term and are projected to save $391 million within the next 15 years.

“This rating increase shows that our partnership with Oakland’s police and firefighters, along with our civilian unions—the International Brotherhood of Electrical Workers (IBEW) Local 1245 and the Confidential Management Employees Association (CMEA), Service Employees International Union (SEIU), Local 1021, and International Federation of Professional and Technical Engineers (IFPTE), Local 21—has allowed us to bolster the City’s long-term financial outlook and preserve the services our Oakland community needs,” said Ms. Landreth.

The upgrades will allow the City to sell its bonds to investors at lower interest rates, thereby reducing the cost of financing capital improvements over time and decreasing the property tax levy required to support the bonds.

The table below presents the credit-rating scales used by Moody’s and S&P. The ratings are an evaluation of creditworthiness, with Aa1/AA, the second and third highest available, both defined as high grade.

Credit Rating Table

Credit Rating Table

Based on press release from City of Oakland, sent to Zennie62Media, Inc.

OaklandNewsNow.com Oakland News Now @OaklandNewsNow oaklandnewsblog.com is by Zennie62Media, Inc. with CEO Zenophon Abraham AKA Zennie62 YouTube Oakland News Now Commentary Vlog YouTube Partner, Oakland California blogger / vlogger Zennie Abraham @ZennieAbraham . Hire @Zennie62Media, Inc to tell your story.

Zennie62Media uses smartphones enabling our 98-blog network, specially-made blogs, website, social media platforms covering politics, news, sports, and tech, @Oaklandcitynews, Oakland City Council, North Oakland, East Oakland, Montclair, Adams Point, Uptown Oakland food culture, BBQ Becky Dr. Jennifer Schulte , Jogger Joe Henry Sintay, Oakland crime news, Bank of America loans, COVID-19 updates, homeless news, SF Bay Area news, Oakland artists, @breakingnewsbayarea, Emeryville, Atlanta news, Chevron Ecuador, Steven Donziger, Fayetteville GA news, @FayettevilleGA Fayette County Georgia, San Francisco news, San Jose news. Also, Academy Awards / The Oscars entertainment,Tom Hanks, Skyline High School, Oakland Sports, Oakland Panthers, Oakland Coliseum, Honda of Oakland, Oakland Arena, Oakland Raiders, Las Vegas Raiders, Las Vegas Stadium Construction, Allegiant Stadium, NBA, NFL, NFL Draft, NFL Combine, CES Las Vegas tech, San Diego Comic Con sci-fi. @GrandLakeTheater @LasVegasHotels, Penny Dreadful City of Angels, Academy of Motion Picture Arts and Sciences

Zennie62Media has content development and online reputation management clients like Insight Terminal Solutions @InsightTerminalSolutions and The Oakland Bulk and Oversized Terminal, with California Capital Investment Group Managing Partner Phillip Phil Tagami @PhilTagami co-developer, @JohnSiegel John Siegel as ITS CEO exposing coal and Oakland fake news. Zennie62 has helped Maria Ayerdi Kaplan @MariaAyerdiKaplan, developer of Salesforce Transit Center in San Francisco, Kofi Bonner, and Flowsent capture the Oakland Cannabis Delivery Dispensary @OaklandCannabis market with fitness model female bodybuilder Laura Ehlen and weedmaps help. We’ve partnered with CoLoursTV, CNN, YouTube, Google, NBC, Vice, Oakland Post / Post News Group, Landis PR, and other media organizations. Competition: The SF Chronicle, Las Vegas Review Journal, East Bay Express, Oakland Tribune, Oakland Voices

Zennie62 interviews celebrities like Lars Frykman, Bill Boyd, Arizona Cardinals QB Kyler Murray, Raiders Owner Mark Davis, Raider Legend Raymond Chester, Brianna Noble, NY Giants Owner John Mara, @SportsTalk Tony Bruno, Sports Agent Leigh Steinberg, Oakland City Charter, Henry Sintay Oakland’s “Jogger Joe”, Cam Newton, NFL Commissioner Roger Goodell, California Governor Gavin Newsom, Tanis Parenteau, Scott Kidd, Actors Richard Dreyfuss, Lou Ferrigno, Lindsey Vonn hot legs, Blake Neely, SDCC’s David Glanzer, Publicist Edward Lozzi. Topics like Oakland Apartment rents, WordPress, CVS Mail Order and Pharmacy, Kaiser Permanente, Rosa’s Home Cooking Restaurant, Oakland Community Kitchens, Lukas Oakland, Maria Alderete, The Studio Cafe, Black Lives Matter, Oakland hangman noose problem, Rayzin Schnitzer 11th Street Diner Miami, George Floyd Protests, Oakland City Charter, @OaklandCityCouncil, Mountain View, CA, London, England, Moscow, Russia, blacks in tech, Tackett Bartlett LLP @TackettBartlettLLP, Jameis Winston, Pinewood Studios Atlanta, Jeff Miller, Joceyln Moore, Derek Carr, Marcus Mariota, Regina Jackson, Barry Donelan, Yanqing Ye, UC Berkeley, NFL Owners Meeting, NFL Annual Meeting, Eli Lilly Coronavirus COVID-19 vacine, Summit Bank Oakland, Bank of America, Oakland protestors arrested, Juneteenth Rally, Len Raphael, Southern Evangelical Seminary, Richard Land, Mike Hutchinson Oakland

Indeed, airbnb, pinterest, credit karma, southwest airlines, mcdonalds, united airlines, drudge report, astros, 49ers, frontier airlines, tractor supply, warriors, alaska airlines, buffalo wild wings, horoscope, shein, raiders, uhaul, ted bundy, nba finals, michaels coupon, cheesecake factory, golden state warriors, kevin durant, realtor com, stephen curry, walgreens photo, drudge, facebook sign in, funny memes, hbo go, hbo now, oakland raiders, vistaprint, braves, san francisco 49ers, monday night football, newegg, travis scott, zion williamson, kohls coupons, lands end, nancy pelosi, kohls coupon, hotwire, kamala harris, harry potter, giants, craigslist sf, california earthquake, boston weather, las vegas weather, sf giants, san francisco weather, san francisco, los angeles weather, lord and taylor, jimmy garoppolo, hawaiian airlines, detective pikachu, clint eastwood, bed bath and beyond coupon, abercrombie, pewdiepie, sfgate, sc lottery, san diego weather, san antonio weather, southwest flights, pikachu, golden state, myatt, just mercy, french open, colourpop, cam newton, anna kendrick, klay thompson, harbor freight coupon, robin williams, portland weather, phoenix weather, north carolina, macbook, how, bath and body works coupon, googleflights, daytona 500, daily horoscope, ashton kutcher, andrew luck, alamo drafthouse, 49ers schedule, trump tweets, thanksgiving, UME Yofa, Saba Moeel, How to, What is, How do I, What do I, Who is?

Also Pat Abraham Yerger, Patricia Yerger, Oakland Mayor Libby Schaaf @LibbySchaaf, Councilmember Nikki Fortunato Bas, Dan Kalb of District 1, Loren Taylor, Lynette Gibson McElhaney, Sheng Thao, Noel Gallo, Robert Bobb, Rebecca Kaplan, Larry Reid, Tech Entrepreneur Sarah Lacy, Personal Trainer Megan Avalon Buffed Barbie, Social Media Pioneer Marc Canter, SF Mayor London Breed, Scott McKibben, CA Assemblymember Buffy Wicks, Schools Superintendent Tony Thurmond, Berkeley Councilmember Ben Bartlett @BenBartlett, Raiders Charles Woodson, 49ers Jerry Rice, Grand Lake Theater Oakland Owner Allan Michaan, Irvine City Manager John Russo, Guy Fieri, Oakland CAO Edward Reiskin, Raiders Coach Jon Gruden Running Back Josh Jacobs, Stanford HC David Shaw, Tri Ngo, Atlanta Falcons Coach Dan Quinn, Michael Mina, NFL Draft Mr. Irrelevant Head Melanie Fitch, Paul Satala. Subscribe to Zennie Abraham’s @Zennie62 YouTube Channel, today!

About the Author

Roger Robarts
I am that rare breed: a blogger, and I don't mean micro.  Follow me on Twitter: Roger Robarts
;

Ben Bartlett Berkeley Councilmember Introduces “Safety For All: George Floyd Community Safety Act

Councilmember Ben Bartlett, Coalition App For City Of Berkeley Virtual Town Hall April 22nd, 2020

Oakland News Now Recent Blog Posts