City of Goodyear, Arizona
For Immediate Release: Nov. 21, 2011
Goodyear receives strong financial ratings
Saves big by refinancing bonds
GOODYEAR, ARIZ. (Nov. 21, 2011) Goodyear will save about a million dollars over the next three years, thanks to strong financial ratings that allowed for the refinancing of several of the city's bonds.
Recently released reports by Moody's Investors Service and Standard & Poor's noted that Goodyear's financial status remains unchanged, despite past downturns in the economy. Because nothing in the city's financials have changed, Goodyear's rating levels remained unchanged and were high enough to allow for the refinancing of some of its bonds. As a result, Goodyear will realize savings of about $1 million over the life of the bonds, mostly during the next three years.
In issuing the Aa3 rating to Goodyear, Moody's report cited conservative financial management and maintenance of healthy reserve levels as the city?s top strength, along with the council's "demonstrated willingness to adjust local sales and use tax." Moody's also noted three challenges facing Goodyear. First, lower-than-expected future reimbursements from the Arizona Sports and Tourism Authority for the ballpark and spring training complexes are likely because of a weakened regional economy. Second, Moody's cited a risk of slow economic recovery because of a weak housing market and continuing high unemployment. Third, sales tax is a particularly sensitive source of revenue which the city is dependent upon.