Moody’s Rating Service and Standard and Poor’s (S&P) Global Ratings have awarded the East Bay Regional Park District with AAA ratings, with a stable outlook, for its history of responsible fiscal management and strong financial position. The AAA ratings allow for lower debt service rates, which creates cost savings that can go toward essential services such as park operations, maintenance, and police and fire protection services.
The East Bay Regional Park District consists of 73 Regional Parks spread out over 126,000 acres in Alameda and Contra Costa counties. East Bay Regional Parks are a valuable public resource that protect natural habitat and provide safe and healthy outdoor opportunities for all.
“The AAA rating is very rare for government agencies and shows that taxpayer funds are being spent wisely and efficiently,” said Park District General Manager Sabrina Landreth. “The ratings recognize the Park District’s long history of strong fiscal management, solid funding base, and robust financial reporting and transparency.”
According to Moody’s, “The rating incorporates the district’s very strong balance sheet reserves, supported by sound fiscal policies and a multi-year trend of surplus operations. The district’s debt, pension, and other post-employment benefits (OPEB) burdens are modest.” Moody’s also says the Park District is in a “very strong fiscal position.”
According to S&P, their AAA rating reflects the Park District’s “High-quality management policies and practices, including the maintenance of a five-year forecasting model and adherence to a minimum reserve policy of 32 percent of annual revenue,” and “Available reserves that are far above our very strong threshold.”
“Maintaining our AAA rating is very important,” said Park District Assistant General Manager for Finance and Management Services, Deborah Spaulding. “It allows the Park District to obtain better financing terms, so we have more funding for improving parks, fire protection, and protecting habitat.”
The AAA ratings were received in conjunction with the issuance of up to $39.5 million in bonds to improve the Park District’s Peralta Oaks North building. The Park District purchased the Peralta Oaks North building for $14.4 million in 2019 to house its Public Safety Division and administrative staff. The building is directly across the street from the Park District’s main headquarters. The Park District has developed renovation plans for the building, which the bond funding will support. Significant ADA and seismic upgrades are needed. The building will serve as the new headquarters for the Public Safety Division, including the District’s Police, Fire, and Lifeguarding services, and provide additional administrative office space.
