A credit rating agency has increased the city of Jacksonville’s rating by two levels, a move that should mean lower costs to borrow money.

Fitch Ratings increased the city’s rating from AA- to AA+, the city announced Tuesday.

The city called the change “a reflection of Jacksonville’s robust financial health, strategic monetary management, and strong fiscal outlook into the future.”

Two other agencies, S&P Global Ratings and KBRA, reaffirmed ratings of AA for the city.

The rating of a city’s bonds is a measure of its credit quality, which is the ability to pay a bond’s principal and interest in a timely fashion. A higher bond rating generally means the city can borrow money at a lower interest rate, saving tax money.

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The three credit rating agencies issued the ratings knowing details of the city’s 2024-2025 budget, Capital Improvement Plan, use of operating reserves and commitment to stadium renovations, the city said.

“Jacksonville continues to deliver strong financial results and credit rating agencies appreciate our diversified economy, fiscal responsibility, and investment in infrastructure and development projects,” Mayor Donna Deegan said in a news release. “This credit rating upgrade is a big deal for our city. It means savings for taxpayers through lower interest costs and money back into our coffers that can be spent on services for citizens.”