S&P Global Ratings has affirmed its AA+ rating for the Town of Oro Valley's
upcoming $18 million in pension obligation bonds (Public Safety Personnel
Retirement System, or PSPRS). Among other things, S&P noted that the Town
of Oro Valley has strong economic fundamentals, extraordinarily strong
maximum annual debt service coverage, and low volatility of its sales tax
collections. This rating helped the Town obtain a highly competitive interest rate
of 2.39% for the bonds, which ultimately lowers the amount the Town pays for
its chosen method of reducing its PSPRS unfunded liability. Bonds are
projected to be issued July 1, 2021, and will be combined with $10 million in
reserves, resulting in 100% funding for its public safety pension systems.”
(Source: Town of Oro Valley Press Release)
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