City earns triple-A bond rating

Two top agencies give highest marks

The city is now assured of more competitive bidding for future bonds, Rockville Director of Finance Gavin Cohen said.

‘‘This designation is important as investors who are looking to purchase the city’s bonds are prepared to accept a lower interest rate, which ultimately allows the city to reduce its cost of borrowing money,” he said.

The designation puts Rockville among 55 triple-A-rated municipalities in the country with populations of 75,000 or less, according to a city press release.

Key factors leading to the improved rating include a ‘‘robust expansion of the city’s tax base” since 2000 and a rise in the wealth levels of the residential base, said Alicia Stephens, Moody’s lead analyst for local government ratings in Maryland.

Since 2000, development has led to a doubling of Rockville’s tax base and a 30 percent growth in population. Median home values in have jumped 250 percent.

Adding to the sunny outlook, the new residents are on average wealthier, Stephens said.

Both rating agencies highlight the redevelopment efforts downtown, such as the recently opened Town Square, as significant contributions to the city’s financial success.

Mayor Larry Giammo welcomed the news as one of Rockville’s top achievements since he took office in 2001.

‘‘An upgrade to triple-A status indicates that we continue to have a place among the nation’s elite cities,” he said. ‘‘To have the world’s top rating agencies independently analyze and state that the City of Rockville is viewed as a stable AAA community is a significant milestone in the city’s history. We should all be proud of our efforts.”

Moody’s will continue to monitor the slowdown in the real estate market, upon which property taxes are based, Stephens said.