Central Yavapai Fire District receives A+ rating from S&P
Standard and Poor’s (S&P), the global credit rating company servicing 28 countries around the world, has returned an A+ credit rating for the Central Yavapai Fire District (CYFD).
The rating is scored and issued for governmental entities that have bond debt. While CYFD has carried an A+ rating for years, this year S&P had to take some additional steps as part of their review because of the Joint Powers Authority (JPA) agreement between CYFD and the Chino Valley Fire District (CVFD) to form the Central Arizona Fire and Medical Authority (CAFMA).
Their additional follow-up included an extensive questionnaire, review of documents, as well as a phone interview with CAFMA Administrative Assistant Chief Dave Tharp. As is noted in a summary report issued on June 28, both fire districts “transferred and combined their personnel, equipment, fire stations and all other assets and liabilities (excluding bond debt) and services to the new entity — the Central Arizona Fire and Medical Authority (CAFMA)”.
“The questionnaire and interview process focused on our accounting, asset allocation, cash reserves and assigned equity of CAFMA back to each fire district,” said CAFMA Fire Chief Scott Freitag.
The interview, review and questioning led to a favorable and stable outlook of the finances of the CYFD. Additionally, the S&P report states, “the stable outlook reflects our view of the district’s stable local economy and stable financial position after transferring assets and liabilities to CAFMA … which we expect it to sustain throughout our two-year outlook horizon.”
“Standard and Poor’s review of the agreement between the two agencies, our allocation of finances and resources, as well as our equity assignments leading them to issue an A+ rating for CYFD further solidifies our position that CAFMA is working in the best interest of our tax payers,” Freitag said. “Their findings support those of our third party independent auditor as well as our third party independent accounting firm.”
Information provided by the Central Arizona Fire and Medical Authority