Fitch Ratings has revised its outlook for the City of Tacoma from negative to stable.
According to a recent statement from the national financial firm, the upgraded rating reflects an improvement in financial operations following the recent appointment of a new management team, positive general fund results for fiscal year 2012 after four consecutive years of deficits, and the adoption of a balanced budget for the 2013-14 biennium.
“We're encouraged by this news,” said Tacoma Mayor Marilyn Strickland. “The City of Tacoma will continue to work hard to ensure that it stays on this healthier financial path.”
The City of Tacoma's $21.8 million unlimited tax general obligation (ULTGO) bonds continue to be rated at 'A+', $185.2 million limited tax general obligation (LTGO) bonds at 'A', and $28.1 million convention center and parking revenue bonds at A+.
Management projects modest additions to its fund balance in fiscal year 2013, which Fitch considers achievable if positive first quarter trends continue.
"We want to ensure that the recent progress we've made is not reversed," said City Manager T.C. Broadnax. “Work is already underway to address our long-term financial challenges."