Fitch Ratings affirmed the Town’s AA+ bond rating with a table outlook, consistent with S&P’s affirmation in September. The bond rating affirmations are significant as the Town prepares to issue an excise tax bond to fund critical infrastructure improvements related to transportation and public safety. During the Nov. 6 Town Council meeting, Resolution No. 1616-24 was approved unanimously. The resolution authorized Town staff to issue an excise tax bond of $75 million; the bond will not result in any new taxes.
“These rating affirmations are key in securing lower interest rates,” said Queen Creek Deputy Town Manager and Chief Financial Officer Scott McCarty. “From a financial standpoint, the Town is in a solid financial position to fund necessary improvements. Thanks to the continued foresight of our Town Council, the Town has funds allocated to repay the debt in our budget.”
The excise tax bond is anticipated to be issued in December. It will include $50 million for public safety infrastructure and $25 million for transportation projects.
“As a young, growing community, the Town of Queen Creek is still developing much of the necessary infrastructure, particularly related to roadways and public safety,” stated Queen Creek Mayor Julia Wheatley. “As a Council, it is important we make financially sound decisions and that we ensure improvements are funded fairly. The bond allows us to fund the non-growth share of infrastructure without adding new taxes.”
The $50 million designated for public safety will be used toward the police and fire training facility, design of a new police headquarters and associated parking garage, and a new vehicle maintenance facility-primarily for police vehicles. The Town created a police department in January 2022, and the Police Infrastructure Master Plan adopted in 2023 identifies the infrastructure needed to serve the community; the funded projects are the priority projects noted in the plan. Once design is complete, construction of the facilities is expected to start in 2026.
The $25 million designated for transportation will help fund roadway improvements identified in the Town’s 10-year Capital Improvement Plan. To learn more about the CIP, including roadways under construction and in the design phase, visit QueenCreekAZ.gov/CIP. The Town is also in the process of updating its Transportation Master Plan; more information is available at QueenCreekAZ.gov/PlanQCRoads.
The Town has received a series of credit rating increases over the years, with both S&P and Fitch Ratings upgrading the Town’s rating to AA+ in 2022. Rating agencies look at four main categories: debt burden, management, financial performance, and economic base. Factors the rating agencies cited included the Town's rapidly expanding economy, including LGES battery manufacturing facility; effective and prudent financial management practices and policies, including comprehensive multi-year planning; expected continued population growth; the Town’s well-funded pensions; its history of positive financial results of revenues exceeding expenses annually in the Operating Budget; and proactive efforts to secure water supplies.
For more information about the reports, visit Fitch Ratings and StandardandPoors.com. For more information about the Town, including the Town’s budget visit QueenCreekAZ.gov.
