We are very proud that Standard & Poor’s has once again assigned its AA+ long term bond rating to the City of Melrose for 2015. This remains the highest rating in the City’s history.
The Standard & Poor’s report is an independent evaluation of all aspects of municipalities, including municipal practices, spending, long term debt, private investment, approved contracts in terms of liability and planning, and future outlooks and trends.
Here are some quotes from the report:
The long term rating reflects our assessment of the following factors for Melrose
- Very strong economy
- Strong management
- Strong budgetary performance
- Very strong liquidity
- Strong institutional frameworks
- There is a strong focus on capital planning
Overall net debt is low at 1.6% of market value and 66.2% of the direct debt for the City of Melrose is scheduled to be repaid within 10 years, which are in our view positive credit factors.
City officials are also seeking a $2.25 million override in November 2015 to fund increased education costs and other budget items. In our opinion, management’s ability to successfully achieve an override would allow Melrose to sustain a stable budgetary performance given that it would permanently increase the tax levy beyond the 2.5% levy cap to support rising expenditures.