S&P Assigns ‘AAA’ Rating to City’s Special Obligation Bonds

The City of Fort Lauderdale announced that Standard & Poor's (S&P) Global Ratings has assigned a 'AAA' rating to the City's approximately $105 million Series 2025 Special Obligation Bonds. At the same time, S&P affirmed its 'AAA' rating on the City's existing unlimited tax General Obligation (GO) bonds. The outlook for both remains stable.

S&P's report highlighted Fort Lauderdale's growing economy, consistent financial performance, sizable reserves, and forward-looking resilience planning as the foundation for the City's continued top-tier rating. The agency also recognized the City's strong financial practices, including conservative budgeting, long-term planning, and proactive steps to mitigate environmental and cybersecurity risks.

Proceeds from the Series 2025 bonds will support critical community priorities, including completion of the new police headquarters and public safety building, as well as infrastructure improvements and technology.

"This reaffirmation of the City's highest rating is a testament to the financial discipline and foresight of our City Commission, City Manager, and staff," said Mayor Dean J. Trantalis. "It ensures that we can deliver essential infrastructure and public safety projects at the lowest possible cost to our residents while maintaining the strong financial foundation that keeps Fort Lauderdale moving forward."

S&P Global Ratings Summary

S&P Global Ratings assigned its 'AAA' rating to the City of Fort Lauderdale's Series 2025 Special Obligation Bonds and affirmed the City's existing unlimited tax GO bonds with a stable outlook.

According to S&P, the City's rating reflects:

• A strong and diverse economic base with continued growth in redevelopment and assessed property values.
• A long track record of positive financial performance, with reserves that consistently exceed the City's formal target of 25% of expenditures.
• Conservative, forward-looking financial practices, including long-term planning and formal investment, debt, and reserve policies.
• Manageable debt and pension liabilities, with pension plans that remain well-funded and limited new borrowing planned.

Outlook

The stable outlook reflects S&P's expectation that Fort Lauderdale will continue to demonstrate strong economic and financial trends, maintain reserves above policy levels, and adhere to its formalized financial and risk management practices.