(TROY, MI) – The City of
Troy has received once again an impressive “AAA” bond rating from Wall Street
rating agency Standard & Poor’s on its unlimited-tax General Obligation
(GO) Refunding Bonds. In addition,
Standard & Poor’s has affirmed its ‘AAA’ ratings on all of Troy’s previously
rated GO debt’.
Standard & Poor’s Summary Report under
their Financial Management Practices (FMA) notes the rating reflects their
assessment of the City’s very strong financial management practices under
Standard & Poor’s Financial Management Assessment (FMA). An FMA of strong indicates that practices
are strong, well embedded and likely sustainable. This is a revision of the City’s FMA to
“strong” from “good,” reflecting the implementation of five-year financial
forecasting.
The stable outlook reflects Standard
& Poor’s expectation that the City will regain structural balance and
maintain healthy reserve levels exerting strong fiscal controls to protect its
financial position. Troy’s financial
performance remains strong and the City’s participation in the diverse Oakland
County economy supports the outlook.
John M. Lamerato, Assistant City
Manager/Finance & Administration referred to Standard & Poor’s Summary
Report that detailed positive aspects of Troy’s economy, “Troy has deep and
diverse local employment and tax bases, which contribute to low unemployment
rates and a relatively low tax rate, very high wealth and income levels, low
debt as a percentage of market value and strong financial operations guided by
sound policies and moderate debt burden.”
Mayor Schilling compliments
City Manager John Szerlag; Assistant City Manager/Finance & Administration
John Lamerato and Financial Services Director James Nash for their exemplary
skill and management of our financial assets of the City of Troy. “We are
proud to receive the Standard & Poor’s AAA designation on our General
Obligation Bonds,” said Mayor Schilling. “The City adopted a three-year budget
that spans fiscal years 2011-2013 and with management recommendations for
spending cuts including staff reductions and reducing general fund spending the
City will remain strong,” added Schilling.
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