In 2023, the City of Chandler became the first Arizona city to earn the top rating from all three major credit rating agencies — Fitch Ratings, Moody’s Investors Service and S&P Global Ratings — on its General Obligation Bonds and Excise Tax Revenue Obligations (ETROs). This accomplishment for the municipality wasn’t the product of one decision but instead reflected decades of hard work through strategic planning, creation of strong financial policies and an ongoing partnership between the legislative and financial divisions of city government.
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According to Chandler’s CFO Dawn Lang, the city began laying the foundation toward its fiscal strength, and eventual top bond ratings, when Intel Corporation chose Chandler for its new manufacturing plant in 1979. This started Chandler’s evolution and strategic planning. Chandler city leaders created a long-term strategy for diversifying its economic base. This included establishing employment corridors, protecting future land use for a variety of industries to thrive within the community and adopting a suite of impact fees in the early 1990s to make sure new development projects contributed to the infrastructure the city would require over the next five decades.
As the city continued to grow, local officials looked to apply the same strategic approach they used for economic development to their financial management. With this directive, the finance team focused on careful forecasting and conservative budgeting to build strong reserves. According to Lang, this foresight protected the municipality as economic challenges such as the Great Recession in 2008.
“We were doing best case, mid case, and worst-case scenario planning,” said Lang. “During the Great Recession, this allowed us to act quickly with expenditure reductions to meet our lower revenue levels. The city avoided layoffs by managing vacancies and offering separation and retirement packages. That ability to pivot, while staying grounded in policy, helped build the confidence Moody’s needed to issue the upgrade.”
Relationships and Policies to Create Results
Chandler emphasizes that a core part of its success is due to the strong relationships it has formed with its financial advisor who has worked with the city since 2002. This long-standing bond has allowed the advisor to understand the ins and outs of the city’s needs and build a mutually trusted relationship that has served the community well. The advisor was a key player in helping the city understand what matters to Wall Street analysts, then turning those priorities into actionable steps Chandler could take to consistently communicate its financial strategies year after year.
One of the city’s key financial principles is aligning ongoing revenues with ongoing expenses and reserving one-time revenues for one-time costs. By utilizing this approach, Chandler has been able to avoid overextension and continue to build reserves which can be pulled upon during difficult economic periods. For example, in 2014 when actuarial changes increased unfunded liabilities in Arizona’s public safety pension system, Chandler was able to respond quickly with an organized paydown plan, and by 2023 the city had paid off its share ahead of schedule.
In addition, the city has become a key voice for Arizona cities in shaping statewide financial policy by supporting legislation to create a special lien on secondary property taxes. This lien would ensure funds would remain allocated to bond repayment even in cases of bankruptcy. Their collaboration with the League of Arizona Cities and Towns helped to improve bond security for municipalities across the state, showcasing the city’s dedication to strong and healthy municipal finance practices.
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The city’s forward-looking approach to fiscal responsibility includes a 10-year capital improvement plan, which their finance team updates annually. Though the city’s charter only requires five, Chandler purposefully over-forecasts to be better prepared for unforeseen challenges. During this time, staff review all revenues to decide between stable and one-time sources, then updates operating and capital expense forecasts to include additional details such as inflation, personnel and projected growth. Chandler’s leaders are clear that their success is something that any city, town or village can achieve.
“Whether you’re managing $1 million or $100 million in bonds, it starts with basic financial best practices and policies, solid forecasting and council discipline,” said City of Chandler Council Member Matt Orlando. “You need the data, you need to tell your story, and most importantly, you need to build trust…with your community and the rating agencies.”
Lang emphasizes key steps a municipality can take toward upgrading their credit rating. Her advice to finance professionals working within a city is to make sure strong financial policies are documented then work to gather buy in from the council to have those policies adopted. Once that’s done, use them consistently until they’re part of the city government’s culture. Over time, these fiscal practices should become part of how the city does business, whether it’s five years or five decades from now.
Looking Ahead
Looking ahead, Chandler plans to stick to the same principles that brought it to this point: responsible budgeting, transparent governance and strategic investments in infrastructure and community services. As more cities across the country work to strengthen their financial footing, Chandler offers a clear example of what’s possible when you plan ahead and stay the course.
You’re Invited
Hear more from city leaders from Chandler, AZ, today from 2 to 3 PM ET Tuesday, July, 29, 2025, during the online panel discussion “From Good to Great: How Cities Can Strengthen Their Credit for Tax-Exempt Bonds.” Speakers include City of Chandler CFO Dawn Lang, and S&P Global Local Government Associate Director Daniel Golliday.
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