Financial Plan, Redevelopment Cited for Cudahy Bond Rating Increase
At a time when so many municipalities are struggling financially, the City of Cudahy is earning high marks for its financial operations.
On Wednesday Standard & Poor’s upgraded Cudahy’s bond rating from “A+” to “AA –“, and Moody’s Investors Service affirmed the city’s “A2” rating.
“This is excellent news for our City and our residents,” said Mayor Ryan McCue. “The upgrade will decrease our borrowing costs, save taxpayer dollars and affirms that Cudahy is moving in the right fiscal direction.”
“At a time when the State of Wisconsin’s bond rating was lowered and most municipalities’ bond ratings remain flat, I am very proud of the work we have done which has caused an upgrade in Cudahy’s bond rating,” the mayor said.
Standard & Poor’s attributes the increase to “AA –“ to Cudahy’s commitment to maintaining the city’s 25% operating reserve fund, completion of a five-year financial management plan, paying off $1.5 million of the City’s unfunded pension liability, steady tax base growth due to successful redevelopment efforts and proximity to the airport and downtown Milwaukee.
Mayor McCue, Finance Committee Chairman Mark Otto, City Accountant Bruce Schuknecht, Director of Economic Development Lara Fritts and Director of Public Works Mary Jo Lange made presentations to Standard & Poor’s and Moody’s on November 4th.
“I applaud our team for their efforts to continue to improve Cudahy’s financial position, especially during these difficult economic times,” said Alderman Otto.
The city expects to see an estimated five basis point reduction in interest cost for the upcoming bond issue, which will translate to approximate $30,000 over the life of the issue. Cudahy also will see savings to all future issues while the city maintains this rating.
