City receives highest possible bond rating from Moody's Investors Service
The City has received the highest possible bond rating, Aaa from Moody’s Investors Service. The new Aaa rating is assigned to the City’s $56.6 million in outstanding General Obligation Bonds, which includes $14.6 million new general obligation bonds to be sold on August 10, 2017. The rating is attributed to the City’s strong fiscal management, healthy reserve balance, growing tax base, favorable location in the Kansas City, MO metropolitan area; manageable debt and pension levels.
from City of Lee's Summit
Bond rating companies evaluate the financial health of bond issuers and based upon their findings, rate organizations on their ability to meet the principal and interest repayments. Moody's Investors Service is a leading provider of credit ratings, research, and risk analysis. Moody's commitment and expertise contributes to transparent and integrated financial markets.
“This is a significant achievement for our community. The Moody’s Aaa bond rating is not achieved by any single individual or department; it is accomplished by an organization as a whole. For us, this has been a combined effort beginning with our city employees, staff leadership team, and the Mayor and City Council. Together, we have worked hard to become a nationally top ranked community while remaining a viable and financially sustainable organization. We are very fortunate to find ourselves in this very prominent position.” said City Manager Stephen Arbo.
The rating also recognizes that the City’s financial management practices along with a growing local economy will continue to support a stable and manageable financial future.
In addition to the growing tax base and favorable location in the Kansas City metropolitan region, employers such as the Cerner Corporation, above average median family income levels and low unemployment rate puts Lee’s Summit in a favorable eye.
Finance Director Conrad Lamb stated “This upgrade reflects the City’s rebuilding of reserves that we were able to achieve despite the years following a significant tort settlement during a challenging economic environment. The impact to the citizens of Lee’s Summit is reduced borrowing costs ultimately saving tax dollars.”
The Moody’s report can be viewed here.