Tuesday, September 15, 2009 - 3:12am
Moody's Investors Service today reaffirmed the City of Madison's "Aaa" general obligation bond rating. This outstanding credit rating is the highest available for governmental entities and means the City will again pay the lowest interest rates available in the marketplace.
"This rating comes as a result of responsible budgeting and prudent planning," Mayor Dave Cieslewicz said. "It is because of that type of planning that, even with new projects, I was able to submit a capital budget $2 million under our planning target for 2010. Even facing turbulent economic times, we will maintain our excellent credit rating."
Moody's carefully monitors the City's budgetary control and stated in their report, "Moody's anticipates that the city's financial operations will remain sound given management's strong fiscal oversight and reserve levels sufficient to meet current financial pressures."
The rating comes in advance of the City's annual note sale, scheduled for tomorrow, which will finance capital projects included in this year's capital budget. Most of these new projects will be financed using Build America Bonds, a federal stimulus program that provides interest rate rebates for qualifying municipal projects. In addition, the City will take advantage of current market interest rates and the "Aaa" rating to refinance nearly $44,000,000 of earlier City debt at substantial interest savings.Contacts:
- Rachel Strauch-Nelson, (608) 266-4611