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.

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.”

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.