SARASOTA COUNTY - Fitch Ratings and S&P Global Ratings affirmed “AA+” ratings for Sarasota County’s utility system revenue and refunding bonds.

The utility currently is issuing approximately $154 million Utility System Revenue Bonds, Series 2025 to fund portions of the enhancements and expansion of its Venice Gardens Water Reclamation Facility (VGWF), including conversion to Advanced Wastewater Treatment (AWT) process by the end of 2027 and expansion of daily treatment capacities and fully operational by mid-2028. The upgrade to AWT will meet Florida Department of Environmental Protection (FDEP) requirements and standards by June 2025. The facility is also being expanded to increase treatment capacity from 3 million gallons per day to 6 million gallons per day.

According to Sarasota County Administrator Jonathan Lewis, the Series 2025 Bonds are the major funding components for upgrades to the VGWRF and we are very pleased with the “AA+” ratings with stable outlooks.

“Our dedication to improving and maintaining water quality is a direct result of the county Commission’s leadership, and their ongoing commitment to protecting our natural resources,” Lewis added. “The bonds are expected to close in September and will help move this extremely important project forward.”

Fitch Ratings and S&P Global Ratings reports determine the county’s perceived worthiness for investing, similar to an individual’s credit score. Higher bond ratings are typically accompanied by a lower interest rate. “AA+” indicates the county is running a financially sustainable system and there is low risk to investors that purchase the bonds.    

S&P Global Ratings and Fitch Ratings indicated that their rating on the utility system are supported by these credit factors:

• A growing economic base, and a stable and diverse customer base.
• Affordable utility rates.
• Robust liquidity reserves that can be sustained through the planned Capital Improvement Program.
• Sound-to-strong operational and financial policies and procedures.
• Formalized fiscal targets within budgeting provide long-term predictability and stability within financial strength.
• Asset management is formalized, routinely updated, and sophisticated, which is critical to support rising climate risk in the region.

Additionally, Moody’s Ratings affirmed its county-wide “Aaa” rating (referred to as a GO or Issuer Credit Rating and is comparable to the Fitch or S&P AAA rating). This rating reflects the government’s ability to repay debt obligations without consideration of any pledge, security or structural features.

The Moody ratings cited Sarasota County’s credit strengths as:

• Comparatively low tax rate leaves ample revenue-raising flexibility.
• Significant increases in full value, revenue and reserves since the pandemic.
• Institutional presence afforded by Sarasota Memorial Hospital.

To view complete analysis of the county’s utility system revenue bond ratings, visit Fitch, or S&P Global or Moody’s ratings.

For more information, call the Sarasota County Contact Center at 3-1-1 or visit scgov.net.