Rochester Reporter

A leading financial-analytics firm closely watched by Wall Street investors awarded its highest credit rating on short-term bonds to the City of Rochester, citing the strong financial management practices of the Evans Administration, Rochester’s growing and vibrant economy, School District rightsizing, robust private-sector development, and rising property values.

“This rigorous outside review of City finances, economic activity and market conditions confirms what we in the city already know: Rochester is an excellent investment and getting better every day,” said Mayor Malik D. Evans. “Moreover, it provides clear and convincing evidence that our strategic investments are working to accelerate business growth, empower residents and expand generational wealth in every neighborhood."

“I want to thank the financial team that continues to reinforce our adherence to fiscal excellence, including Deputy Mayor Michael Burns, Finance Director Kim Jones and Budget Director Suzanne Warren,” Mayor Evans continued. “This bond rating is a testament to the diligence of every City employee and their commitment to outstanding customer service and the principles of careful stewardship of taxpayer resources.”

S&P Global Ratings has assigned Rochester its SP-1+ bond rating, its strongest endorsement of the City’s “very strong capacity” to manage short-term debt with minimal risk to investors and taxpayers. The ratings firm also affirmed its AA- and SP-1+ ratings on existing long- and short-term bond issues.

Much like consumer credit scores, municipal bond ratings allow cities to borrow money at reduced interest rates and provide useful insight into the effectiveness of the City’s fiscal management and economic outlook.

Money raised through the bond sale will fund significant capital projects, including upgrades to the city’s water infrastructure, school modernization, street construction, and reconstruction.

In its rationale for the strong bond rating, S&P cited several factors both historic and new:

The City’s conservative budgeting practices that produced a 37 percent reduction in property taxes: “The expenditure budget is largely a continuation of 2024 with only a 1.4 percent increase. Consistent with prior years, we expect the City will outperform its estimates...we expect performance to remain strong given recent trends and management's ability and willingness to adjust its budget resulting in continued stability in its very strong reserves and cash balances.”

A growing local economy with numerous large-scale developments: “Ongoing development and redevelopment are likely to continue given large projects still underway including the final phases of redevelopment of former Xerox and Chase towers into mixed-use properties. New commercial properties manufacturers continue coming online.”

The recent property revaluation reflects rising wealth: "Growth beyond earlier projections resulted in an improvement in our view of city's economic profile. We expect ongoing improvement in economic metrics near term."

Improved financial management of Rochester City School District: "We expect district will draw down reserves intermittently as part multiyear plan believe there will be no imminent budgetary pressure from district on city finances."

Recognition of climate change implications: S&P credited City's Climate Change Resilience Plan addition Director Emergency Management coordinate response weather-related emergencies Federal State agencies.

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