City of Gainesville receives stable credit rating reviews from Moody’s and Fitch

Press release from the City of Gainesville

GAINESVILLE, Fla. – The City of Gainesville has received strong credit rating reviews from both Moody’s Investors Service and Fitch Ratings for the issuance of its upcoming 2026 Capital Improvement Revenue Bonds. These ratings reflect the agencies’ continued confidence in the City’s financial management, reserve levels, resiliency, and long-term fiscal strategy.

Moody’s affirmed the City of Gainesville’s issuer rating and outstanding non-ad valorem revenue obligation bonds at Aa3. Moody’s also assigned an Aa3 rating to the City’s proposed $33.1 million Capital Improvement Revenue Bonds, Series 2026. The outlook is stable.

Fitch assigned an AA rating to the upcoming Capital Improvement Revenue Bonds, Series 2026, and affirmed the city’s AA Issuer Default Rating and non-ad valorem revenue backed obligations. Fitch also assigned a stable outlook.

Credit ratings are a key factor in determining the interest rates the City pays to fund capital projects and infrastructure. Strong ratings signal confidence in the City’s financial stability and can help reduce borrowing costs, saving taxpayer dollars over time.

These reviews are especially significant because they come after several years of budgetary transition tied to the separation of Gainesville Regional Utilities (GRU), now operating under the GRU Authority Board. Moody’s noted the City has absorbed substantial year-to-year decreases in the Government Services Contribution (GSC), which was historically transferred from GRU to help fund the provision of City services.

“The City of Gainesville has undergone a major financial shift over the past three years,” said Gainesville Mayor Harvey L. Ward. “The decline in the transfer from our municipal utility has created challenges, but we never lost focus. I’m pleased to see ratings that show these agencies recognize the City is making responsible fiscal decisions.”

Moody’s praised Gainesville’s response to the lower utility transfers, noting the mix of property tax increases and expenditure controls used to improve the City’s financial position “reflects extremely well on management and on the City’s ability to adapt to any potential fiscal difficulties.” The agency also cited the City’s growth, solid financial position, and moderate leverage as key rating factors.

Fitch also highlighted the City’s financial resilience and strong reserve levels, mentioning the broad revenue base, growing population, large student population, and the stabilizing presence of the University of Florida as factors in the City’s credit profile.

Both agencies emphasized Gainesville’s competitive financial position, effective management practices, and robust General Fund as additional factors reinforcing its stable credit standing.