Budget and Financial Reports for the City of South Portland

 

The Annual Reports are a fiscal year snapshot of financial transactions, statement of assets and liabilities, departmental accomplishment, improvements, awards and other matters of historical significance. 

The Comprehensive Annual Financial Report is the audited financial statements of the City.  The statement is compiled from a review by a certified accounting firm utilizing Governmental Accounting Standards Board (GASB) requirements. 

The Municipal Budgets are the approved budgets from the last three fiscal years for both the City and the School Department. 

The Capital Improvement Budget is a seven year plan of expenditures for projects and equipment that have a greater than fiscal year life span.


 

S&P Assigns Aaa to South Portland, ME's GO Bonds; Outlook Stable

 

NEW YORK (Standard & Poor's) September 8, 2017-- S&P Global Ratings assigned its 'AAA' rating to the City of South Portland, Maine's 2017 general obligation (GO) refunding bonds. At the same time, S&P Global Ratings affirmed its 'AAA' long-term rating on the city's GO debt outstanding. The outlook is stable.

The bonds are general obligations of the city, for which it has pledged its full faith and credit. The bonds are payable from ad valorem taxes that are subject to limitation under the state's property tax levy limit, except for bonds issued for school projects, which are from unlimited ad valorem taxes. We understand that bond proceeds will refund portions of 2010 and 2012 bonds for a projected $650,000 of present value savings.

We rate South Portland above the sovereign because we believe it can maintain better credit characteristics than the U.S. in a stress scenario, based on its predominantly locally derived revenue base and our view that pledged revenue supporting debt service on the bonds is at limited risk of negative sovereign intervention. The rating above the sovereign is based on our criteria, "Ratings Above The Sovereign: Corporate And Government Ratings—Methodology And Assumptions" (published Nov. 19, 2013, on RatingsDirect). 

The rating reflects our assessment of the following factors for the city:

· Strong economy, with access to a broad and diverse metropolitan statistical area (MSA);

· Very strong management, with strong financial policies and practices under our financial management assessment (FMA) methodology;

· Strong budgetary performance, with operating surpluses in the general fund and at the total governmental fund level in fiscal 2016;

· Very strong budgetary flexibility, with an available fund balance in fiscal 2016 of 20% of operating expenditures, and the flexibility to raise additional revenues despite statewide tax caps;

· Very strong liquidity, with total government available cash at 40.7% of total governmental fund expenditures and 6.1x governmental debt service, and access to external liquidity we consider strong;

· Very strong debt and contingent liability position, with debt service carrying charges at 6.7% of expenditures and net direct debt that is 58.6% of total governmental fund revenue, as well as low overall net debt at less than 3.0% of market value; and

· Strong institutional framework score.

See Official Detail S&P Bond Rating

 

Moody's Assigns Aaa to South Portland, ME's GO Bonds; Outlook Stable

 

Global Credit Opinion - 8 Sept 2017

New York, September 8, 2017 -- Issue: 2017 General Obligation Bonds; Rating: Aaa; Rating Type: Underlying LT; Sale Amount: $13,500,000; Expected Sale Date: 08/23/2016; Rating Description: General Obligation Limited Tax;

Summary Rating Rationale

Moody’s Investors Service has assigned a Aaa rating to the City of South Portland, ME $14.2 million 2017 General Obligation Refunding Bonds. Concurrently, Moody’s has affirmed the Aaa rating on $56.4 million of outstanding rated general obligation debt. The outlook remains stable.

 

The Aaa rating reflects the city’s stable and diverse tax base with average wealth levels, a growing labor force, well-managed financial position, and manageable debt and pension burdens. 

See Official Detail Moody’s Bond Rating

SOURCE: Moody’s Investors Service - Aaa ratings are assigned for issues judged to be of the best quality, carry the smallest degree of investment risk and are generally referred to as “gilt edged”.  Interest payments are protected by a large or by an exceptionally stable margin and principal is secure.  While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues.