Making the Grade
September 20, 2010 11:40 AM
We got word the other day that our Aaa bond rating had been renewed for another year. This means that Madison continues to be among a relative handful of local governments around the country who are so well managed that they get the lowest rates possible when they go out to borrow money. It is essentially the bond markets saying that they have confidence in our ability to repay our debts and that we are a low risk.
This is always good news, but it's especially welcome this year. Heading into a third consecutive recession-era budget, we're continuing to manage city government responsibly. We're not using accounting tricks, relying on one-time revenue to balance the books, counting on overly optimistic revenue or expenditure assumptions or raiding our long-term cash reserves. Instead, we make hard decisions about expenditures and the taxes needed to pay for them. That kind of sound management gets reflected in a simple set of letters and that continues to be Aaa.