City again earns highest long-term debt rating from S&P Global Ratings

Mayor Katjana Ballantyne is proud to announce that for the third year in a row, the City of Somerville has received the highest possible long-term debt rating of ‘AAA’ from S&P Global Ratings. This rating reaffirms the city’s financial strength and ensures lower borrowing costs for critical infrastructure investments that benefit residents.

“Securing a AAA bond rating for the third consecutive year is a powerful affirmation of Somerville’s financial management and our commitment to responsible, forward-thinking investments,” said Mayor Ballantyne. “This rating isn’t just about strong numbers, it’s about delivering real benefits to our residents, ensuring we can invest in schools, roads, affordable housing, and climate resilience for less, which stretches our taxpayer dollars further. I want to thank Finance Director Ed Bean and our dedicated public servants for their steadfast commitment to working with my administration to keep Somerville on solid financial ground.”

S&P’s report for 2025 underscores Somerville’s expanding tax base, strong economic outlook, and disciplined budgeting as key factors in securing another AAA rating. 

The 2025 S&P report highlights Somerville’s:

• Growing property tax base driven by residential stability and regional demand for life sciences space and housing
• Consistently positive financial performance, with revenue outpacing expenses and budget surpluses increasing reserves
• Strong liquidity and available reserves, exceeding most comparably rated municipalities
• Long-range planning focus, incorporating sustainability, climate risk mitigation, and cybersecurity protections
• Debt and pension management efforts, including a plan to fully fund pension liabilities by 2033 and a $29.3 million OPEB trust

Somerville’s 2025 budget of $397 million represents a 7% increase from the previous year, aligning with recent financial trends. Despite a slowdown in certain projects due to interest rates, large-scale development remains on track, and the city continues to take a financially conservative approach to budgeting.

AAA Rating Ensures More Affordable Investments for Residents

The AAA rating secures the city’s ability to borrow at the most favorable interest rates, making key public projects more affordable. This includes:

• School renovations and new construction
• Infrastructure improvements, including roadwork, bike lanes, and transit access
• Affordable housing initiatives
• Sustainability and climate resilience projects
• Investments in municipal structures and facilities like fire stations, parks, and playgrounds

The AAA rating also enhances Somerville’s attractiveness to investors, reinforcing its reputation as a secure and thriving economic hub in Greater Boston. This strong financial standing will continue to support the city’s vision for sustainable growth and equitable development that creates jobs, housing, and tax revenues that fund community needs and goals, as outlined in SomerVision 2040 and the Somerville Climate Forward Plan.