For the 13th year in a row, Moody’s has awarded Berea an Aa2 credit rating.
A city’s rating is equivalent to your consumer credit score, which may be given by one of the major credit rating services such as Equifax, Experian or TransUnion. It comes into play when you apply for a credit card or buy a house or car.
Moody’s Investors Services is the rating service for cities and other government entities. It’s our Equifax. An Aa2 rating is considered high prime. It means that Moody’s has looked at the City’s financial statements, assets, fund balances and projects and concluded that Berea is in excellent financial shape. The high rating makes Berea competitive for excellent bond and note interest rates.
Our general fund balance has hovered around $3 million for the past several years. When I took office, the balance was at $1 million, so we’ve tripled that.
Revenue has been fairly consistent over the past decade. We try very hard to manage year to year with what we have. That says it all. At the end of the day, we have the money in the bank to pay our bills.
Bottom line, the City’s bottom line is very healthy. There have been no new taxes and no City employees have been laid off. Services have remained steady, and in many cases, have increased.
As Moody’s commented, “Berea has managed to land on a very narrow runway.” And we will continue to be faithful stewards of your tax dollars.