KBRA Releases Surveillance Report for Fort Worth, TX General Purpose Bonds, Tax Notes, Certificates of Obligation

On May 1, 2024, KBRA affirmed the long-term rating of AA+ to the General Purpose Bonds, Tax Notes, and Combination Tax and Revenue Certificates of Obligation (collectively, "the General Obligations") of the City of Fort Worth, TX. The Outlook is revised to Stable from Positive.

The Outlook revision reflects KBRA’s observation that despite pension reform measures enacted in 2018, the City’s annual employer contributions to the Retirement Fund remain significantly below the actuarially determined contribution (ADC), as has been the case in each of the last ten years. While the Employees’ Retirement Fund’s $2.5 billion FY 2023 net pension liability (NPL) equates to a manageable 2.3% of the full market value of the City’s rapidly growing assessment base, in KBRA’s view, the plan’s extremely low funded ratio has the potential to restrict long-term financial flexibility should pension reforms fail to improve the plan’s funded status.

To access rating and relevant documents, click here.

Click here to view the report.