Submitted by City of Carmel
The City of Carmel has retained its strong, investment-grade AA credit rating after a review of the City’s financial strength and long-term stability. The rating was issued by Standard & Poor’s (S&P) for the sale of $62.45 million in lease rental bonds that will be used to finance the construction of several road system projects, including the completion of various multi-use paths along existing roads.
S&P issued its report stating that Carmel’s local economy “remains a pillar of credit strength,” adding that “the city’s growing tax base, coupled with its strong management, continues to support Carmel’s stable financial profile, which is characterized by very strong reserves and consistent operating performance.”
Mayor Jim Brainard was pleased with the report.
Brainard
“This is the same rating the City of Carmel had when I became mayor in 1996. Growing cities require tremendous investments in roads, bridges, sidewalks, trails and parks. This takes a substantial amount of long-term borrowing,” Brainard said. “However, we have managed our finances carefully so that the rating stays very high and our tax rates remain very low.”
Editor’s note: One of the city’s bond ratings was downgraded from AA+ to AA in late 2017. S&P issued its decision citing “the city’s rapidly increasing debt burden” while noting Carmel’s strong local economy.
“We work very hard to manage city finances and take prudent steps to invest wisely in projects that benefit our residents and make Carmel one of the best places to live and work in America,” Brainard continued. “That hard work has resulted in this positive credit rating which helps us achieve a more competitive interest rate when selling these bonds, thus saving taxpayer money.”
Other key findings S&P reported in its review include:
- While the city is largely built out, significant redevelopment and continued expansion in recent years have contributed to Carmel’s good mix of residential and commercial properties, with several large apartment and office complexes among the city’s leading taxpayers.
- Carmel’s Assessed Valuation of just over $10.1 billion as of the 2023 assessment year, is expected to continue growing at a steady pace, considering approximately $2.1 billion of new development is actively in the pipeline.
- Approximately 125 companies have international, national, and regional headquarters in Carmel, including CNO Financial Group Inc., GEICO, Liberty Mutual Insurance, and Resort Condominium International. Most recently, Republic Airways announced a $200 million phase one plan to relocate its headquarters to Carmel, bringing with it an anticipated 1,900 new jobs.