Apparently, our economy is good, relatively speaking. Tell that to the people sleeping on the streets asking for blankets.
Mayor and Council Members:
Moody’s has continued the city’s Aaa bond rating with a stable outlook. The rating is for the $57.1 million in tax-exempt and taxable general obligation notes that will be issued by the City next Tuesday. This is the highest possible rating an issuer can receive. It affirms the city’s sound financial and budget management, conservative debt repayment structure, stable economy relative to the state and nation, and increasing general fund reserves. The rating confirms market confidence in the city’s economic condition and the Mayor and Council’s fiscal management. Moody’s identified two conditions that could change the rating down in the future – weakening of the city’s tax base and demographic profile as well as marked deterioration in fund balance or liquidity.Moody’s recently introduced a new, more rigorous, methodology for determining its ratings. This new methodology places more emphasis on the strength of the local economy, level of pension liabilities, and size of fund balance, among other factors. Under this new approach, two Wisconsin communities that were rated Aaa by Moody’s, New Berlin and Appleton, were placed under greater scrutiny. Appleton was eventually downgraded to Aa1 due to the relative strength of its local economy.
The City of Madison was not placed under scrutiny due to its strong economy and sound financial management. The City is one of four Wisconsin cities that receives Moody’s highest bond rating.
A press release version of the report is attached. I will forward a PDF version when it becomes available tomorrow.
Please let me know if you have any questions.
Thanks.
Dave Schmiedicke
