Somerville Earns AAA Bond Rating for Fourth Consecutive Year

The City of Somerville has once again earned the highest possible long-term bond rating, AAA, from S&P Global Ratings, marking the fourth consecutive year the City has received the top rating.

The AAA rating reflects S&P’s confidence in Somerville’s financial management, long-term planning, and ability to balance strong public investment with fiscal discipline. The rating helps lower borrowing costs for the City, saving taxpayer dollars as Somerville invests in core services and critical infrastructure.

“This rating affects what we can get done, and what it costs,” said Mayor Jake Wilson. “When we earn top credit, we borrow for less. That means more dollars go into streets, schools, and city buildings, not interest, and we can keep delivering without passing unnecessary costs on to residents.

What the AAA Rating Means for Residents

The AAA bond rating allows Somerville to borrow at the lowest available interest rates, reducing the cost of major public investments, including:

• School construction and renovations
• Street, sidewalk, and transportation improvements
• Affordable housing initiatives
• Climate resilience and stormwater infrastructure
• Public facilities such as fire stations, parks, and playgrounds

Lower borrowing costs mean more of every dollar goes toward projects residents rely on, not interest payments.

Why S&P Gave Somerville Another AAA

S&P highlighted several key strengths behind the City’s continued top-tier rating, including:

• A large and growing property tax base supported by regional demand for housing and commercial space
• Consistently positive financial performance, with revenues continuing to outpace expenditures due to fiscally conservative budgeting
• Strong reserves and liquidity, exceeding those of most similarly rated municipalities
• Disciplined long-range planning, including preparation for rising costs and economic uncertainty
• A clear plan to manage long-term obligations, including fully funding pension liabilities by 2033 and maintaining a well-capitalized OPEB (Other Post-Employment Benefits) trust

“This rating tells residents one simple thing: Somerville is well-run and financially stable,” added Mayor Wilson. “We’re delivering daily services, planning for the long term, and making smart investments without overextending. That means we can fix roads, modernize schools, and build a stronger city, while stretching our tax dollars.”

S&P also noted Somerville’s proactive management approach, stable outlook, and ability to maintain balanced operations even amid slower revenue growth and rising cost pressures.

The City’s FY26 budget totals $380 million, reflecting a measured increase consistent with recent years and aligned with maintaining core services while managing costs responsibly.

Persons with disabilities who need auxiliary aids and services for effective communication (i.e., CART, ASL), written materials in alternative formats, or reasonable modifications in policies and procedures to access the programs, activities, and meetings of the City of Somerville should please contact Adrienne Pomeroy in advance at 617-625-6600 x 2059 or apomeroy@somervillema.gov.