10/29/2026
October 29, 2026 - City of Fridley maintains strong financial health and clarifies its relationship with the School District after recent media coverage.
Recent news coverage of Fridley Public School District (School District) finances has raised questions about how public budgets are managed and how financial decisions affect our community. While the City of Fridley (City) and the School District both serve residents, they operate under separate governing bodies, budgets, funding sources and financial processes. The City is sharing this information to help residents better understand the differences between the two and provide clarity on the City’s own financial planning and budget process.
Current bond rating:
The City of Fridley maintains an Aa2, or the third highest, bond rating from Moody's Investor Services. The most recent credit rating opinion highlights the City’s healthy financial reserves, stable operations and strong redevelopment activities.
A bond rating may be thought of as a measure of risk or the likelihood that the City would not be able to make debt service payment. Therefore, a financial institution uses the bond rating to determine the cost to the City to borrow money, expressed as a higher or lower interest rate. The higher the bond rating, the lower the interest rate.
City budget process:
The City of Fridley's budget approval and implementation process is determined by the City Charter. This process is carried out by the Fridley City Council and City staff. It is not involved with the school district budget process.
The City Charter outlines the process for preparing, approving and amending the annual budget. The process begins with City departments developing their proposed operating budgets for the coming year based on planned projects, service needs and spending from previous budget cycles. Departments work with the City Finance Department and City Manager to review budget requests, evaluate projected revenues and expenses, and prepare the proposed budget for City Council review.
The proposed budget is presented at multiple City Council meetings throughout the year, where Councilmembers review the information and request changes. Residents then have an opportunity to provide feedback during the annual Truth-in-Taxation public hearing before the City Council adopts the final budget in December each year.
Distinction of City Budget Expenditures and Management:
The City’s budget supports municipal services and staffing areas such as public safety, public works, administration and recreation while the School District’s expenditures are primarily designated to support education, staff salaries, curriculum and materials, student transportation and other school operations.
Each organization's administrative leadership and finance staff manage the budget after approval, with departments responsible for overseeing spending in their areas. The City and School District operate independently and are accountable to their own governing bodies.
At times, the City and School District enter financial agreements for shared services, such as the School Resource Officer (SRO) contract. All payments between the City and the School District are currently up to date.
More Information:
The City maintains a City Finances webpage (FridleyMN.gov/CityFinances) which includes financial documents for the budget, capital investment program, annual comprehensive financial report, popular annual financial report and up-to-date financial audits. Community members can view these documents and learn more about the City’s financial position and projects.
If you have questions regarding the City’s financial position, please contact our staff via an online form at https://bit.ly/4kkzIbt or call 763-572-3529.
View or download the press release: https://bit.ly/4A1VAgx
