AAA Credit rating
AAA Credit Rating
The city of Hoover is now one of three Alabama cities with a Triple A credit rating.
Council President Jack Wright announced Monday night at a council meeting that Standard & Poor’s Rating Services has elevated Hoover’s general obligation warrants from a Double A rating to a Triple A rating. The rating service grades general obligation warrants for individual cities. A higher credit rating translates into more attractive bonds and warrants and better interest rates in the financial market.
Mountain Brook and Huntsville are the other cities with Triple A ratings, Wright said.
“This doesn’t mean we have more money than we know what to do with,” Wright said. “What it means is we have enough money to pay our bills, and we do it properly and (within our budget).”
Standard & Poor’s assessed Hoover based on its 2013 fiscal year.
Standard & Poor’s noted the city’s strong local economy, strong budgetary flexibility and strong reserve funds. “The stable outlook reflects our belief that Hoover will maintain very strong budgetary flexibility and improve on liquidity in the two-year outlook horizon,” Standard & Poor’s report states. “We believe that management will make the budgetary adjustments it deems necessary to maintain structural balance.”
However, the assessment notes that much of the city’s revenues are based on “economically sensitive, cyclical sales tax revenues” and if budgetary performance worsens and drains reserves “we could lower the rating.”
The council voted to accept a bid from Jones & Jones Inc. for $257,742 for additions to Fire Station No. 1 in the Green Valley area. Jones & Jones was the lowest bidder among six other companies.
Hoover Fire Chief J. C. Wingate said the department is remodeling and replacing the bay area of the fire station, which was built in the mid-60s. “We’re tearing down the original two bays because the garage doors aren’t big enough for the trucks we have now, and they’re not deep enough for the trucks anymore,” he said. Wingate said if all goes smoothly, he expects the project to take about 120 days to complete.
In other actions, the council:
Reappointed LeAnna Huddleston and Guy Locker to three-year terms each to the seven-member Board of Zoning Adjustments. Their terms are set to expire June 7.
Approved allowing the mayor to negotiate an agreement with the U.S. Secret Service to occupy 32,000 square feet of office space at the Hoover Public Safety building. The federal agency has operated the National Computer Forensic Institute from the building for six years. The agreement will allow the Secret Service to use the building rent free for one year with a 10-year cap. Law enforcement officials from across the country come to Hoover to receive training from the institute.
Established Aug. 1-3, 2014, as “Back to School” Sales Tax Holiday in the city of Hoover. From 12:01 a.m. Aug. 1 tomidnight Aug. 3, certain school supplies and clothing will be exempt from state and city sales taxes. Those items include clothes $100 or less, a single purchase of a computer, software and computer supplies $750 or less and non-commercial purchase of school supplies, art supplies and school instructional material up to $50 per item.
Delayed a decision to impose a $5 fee to renew cag tags at the Hoover Met Stadium. The council last month agreed to operate a car tag renewal service for Hoover residents. That service is expected to start sometime this month. But Wright said Mayor Gary Ivey is talking to legislators to see if Hoover can offer even more services and issue new car licenses as well as licenses for boats and motorcycles. Ivey did not attend Monday night’s meeting. The council tabled the item until its June 16 meeting.