The following article appeared in the Record-Courier this morning. Needless to say, we are very proud of this accomplishment. The City has never had a bond rating this high (and we will strive to get to AAA). It is a testament to the hard work that everyone here does to be fiscally responsible with your tax dollars. STREETSBOROS BOND RATING UPGRADED By Mike Lesko | Gateway News Published: August 6, 2014 4:00AM Streetsboros bond rating has been upgraded from AA- to AA by Standard & Poors in New York, one of the nations top credit-rating agencies. The rating is the second highest category possible, according to Finance Director Jenny Esarey. The highest rating is AAA. This upgrade actually makes the city more attractive for borrowing, Esarey said, adding the city would get a better interest rate on projects. We are absolutely thrilled to have earned the upgrade. The administration has worked hard. Mayor Glenn Broska agreed, saying the administration and City Council have worked hard to create a financially stable, economically vibrant city. The city has been focused on its economic development efforts, attracting businesses to the community, Broska said, and has finalized a deal to extend Philipp Parkway, opening up additional commercial development and reducing commercial traffic downtown. Esarey said there are no plans to refinance in the near future due to the costs associated with refinancing and that the newly issued bonds, issued in 2013 for the water tower and judgment bonds, will be unable to be refinanced until the call option is available. Council President Julie Field said the rating upgrade is excellent news. This is a positive reflection on our administration, our mayor and our department heads, Field said. Esarey said the upgrade occurred after Brian Cooper, the citys financial adviser from ACI Financial Advisors, suggested because of all of Streetsboros positive budgetary adjustments in the past year, the city should have a review of its bond status with Standard & Poors. She said she gathered information that was sent to a Standard & Poors rating committee on July 23. The last review was done in August 2013, and the bond rating issued was AA-minus, Esarey said. The news about the upgraded rating was received by the city July 25, she said. Reasons for the upgrade, according to Esarey, were: The citys per-capita buying income is very strong; the city is maintaining a balanced budget; the citys budgetary flexibility is very strong; and the city has exceptional access to capital. We are very happy to see our conservative fiscal policies are paying off. Broska noted that the bond rating upgrade occurred while Esarey has been on the job in Streetsboro for less than one year. It was a very short period of time that weve gone from AA-minus to AA, Broska said. Its a very positive reflection on the city overall. Council Vice President Bridget Pavlick added, What Jenny has been able to accomplish in a short amount of time [is impressive]. Email: mlesko@recordpub
Posted on: Wed, 06 Aug 2014 12:51:50 +0000