08/02/2025
The City of Jacksonville is pleased to announce that S&P Global and Kroll Bond Rating Agency (KRBA) have assigned two more top tier “AA” ratings for our 2025 special revenue bonds. Earlier this month, Fitch Ratings affirmed an “AA+” rating.
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.
“We are grateful that S&P and Kroll have joined Fitch in recognizing the significant progress our city is making,” said Jacksonville Mayor Donna Deegan. “This year’s ratings mark the second year in a row that we have received top tier ratings for this critical bond issuance that supports our infrastructure projects.”
The ratings reflect Jacksonville’s solid financial track record, healthy reserves, strong and diverse economy, fast population growth, and significant military presence. The City’s focus on permitting, downtown development, and climate resilience were also contributing factors.
Highlights from the S&P Global report include:
“The 'AA' rating reflects Jacksonville's robust and diverse economy that continues to strengthen through healthy employment gains and investment coming to the city, along with an already significant military presence. The city, located in Duval County, is the economic engine for the seven-county Northeast Florida region and has seen its population increase by over 15% in the last decade. … Economic output continues to outpace the national rate and provides additional support to the rating. The economic growth in conjunction with the city’s comprehensive financial policies fiscally responsible management “has resulted in several years of positive operating performances and healthy reserve levels.”
“Broad and expanding tax base, with economic output above the national average and steady population growth. Property valuation growth, steady building permits, and notable development projects are contributing to the city’s strong assessed value growth. Robust private investment and employment gains will likely contribute to further growth in the tax and employment bases in the near term. Proactive and sophisticated financial policies and practices, demonstrated by well-rounded budgeting practices, general fund forecasting and long-term capital planning.”
“The city is working to address immediate and long-term climate and weather-related risks, for example, by adding staff to its resilience team and participating in the Storm Resiliency and Infrastructure Development Review Committee. We understand that Jacksonville has taken steps to buy out certain parcels in flood-prone areas in recent years. … According to officials, the city continues to implement the Resilient Jacksonville strategy, which includes a commitment to risk-informed land use decisions.”
The KRBA report also noted that Jacksonville has an excellent economic base, population growth rate, and demographic makeup; an exceptional budget and appropriation process; and ideal management structure, budget practices, and policies. They also noted that the City’s reserves “far exceed the City’s Reserve Policy targets of 5–7% for operating reserves and 7–10% for emergency reserves, providing a substantial cushion above the minimums and underscoring the City’s strong commitment to financial resilience.”
