Mayoral Report—2006

How Do You Want To Be Remembered?

Recently, my youngest son turned 12–years old. That challenge alone rivals the many issues I wrestle with as your Mayor! Citizens and businesses alike want to know their finances are being well managed because we all work hard for the money we send to our various government entities. In spite of the political rhetoric this past recent Primary election season, your public monies are well managed and this fact is recognized and honored by outside authorities. Our City has received high marks for our fiscal management of the resources we receive from your tax payments, drinking water revenues, planning and building fees, franchise payments from the utility companies and various grants.

Once again, our independent annual financial audit received a “clean opinion” by our state-mandated outside auditing firm. The Government Finance Officers Association (GFOA) also awarded the City of Beaverton the Distinguished Budget Presentation Award and the Certificate of Achievement for Excellence in Financial Reporting. I’m happy to say we have received both honors for each year of my tenure as your Mayor. I consider the management of our City financial resources one of my most important functions in serving you. I very much value the trust and confidence you have placed in me.

Recently, we began the process of selling water revenue bonds to help finance some necessary major water construction improvements at the supply source and transmission lines. In preparing to sell these bonds, national bond rating agencies conduct a significant impartial evaluation of the City and its finances. We are scrutinized from the bottom up and every way possible to evaluate what the risk is to those buying the bonds and advancing the City money for an extended period of time. It is a real simple system—from this evaluation, the less risk involved the lower the interest rate costs for the bond monies received. “In addition to strong liquidity, the city has several good financial policies and practices,” according to the May 2006 Standard & Poor’s report raising the City of Beaverton bond rating two steps.

I’m pleased to report that our 2006 City bond rating was improved and increased by both top national bond-rating agencies. Moody’s increased our bond rating one step from A2 to A1, and Standard & Poor’s upgraded the City two categories from A+ to AA. It is highly unusual that any rating would jump two steps, but it does accurately reflect the overall high level of confidence that Standard & Poor’s has in the City of Beaverton. The bond rating agencies evaluate all aspects of City finances, its day-to-day management effectiveness, liquidity, cash reserves, debt service coverage and the overall community before assigning a rating that determines risk and the overall interest rate for the bonds being sold. You can be assured your monies are safe, accounted for and being well managed.

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