The San Ramon Valley Fire Protection District last month received Moody's Investment Service's Aa1 issuer credit rating, the highest rating given by the financial services company that provides credit ratings for countries, corporations, government agencies and public finance issuers.
The Aa1 rating shows the fire district's capability to meet financial commitments.
"We are very pleased to have received this affirmation", said Ken Campo, interim chief financial officer. "We have worked diligently over the past year to balance the budget and implement cost savings that will enable the district to continue its high level of service to the community."
According to Moody's report, the SRVFPD can successfully balance its financial operations and pay down its unfunded liabilities despite increasing fixed costs.
In addition, the report shows how the district can work collaboratively with management and employees to agree on cost-saving measures, which include increased employee contributions to retirement and health costs. It also mentions the district's growing revenue base and "prudent level of reserves."
The overall report of the fire district's finances is of high-quality, but Moody's did note the district has some obstacles to overcome in regard to pension costs and retiree medical obligations.
"The Fire District's Board of Directors, along with management and labor, will continue to work cooperatively to address the liabilities of the district," said fire board Finance Committee chair, director H. Jay Kerr. "Current projections show the district's ability to maintain a balanced budget, increase reserves and significantly pay down our retiree medical liability, while still maintaining an excellent level of service for the foreseeable future."