CLAYTON – Moody’s Investors Service announced that it has upgraded the rating on the Town of Clayton’s general obligation bonds from Aa2 to Aa1.
Aa rated obligations are judged to be of high quality and are subject to very low credit risk. Aa1 is the highest level in the Aa category assigned by Moody’s. Ratings are published by credit rating agencies, such as Moody’s, and used by investment professionals to assess the likelihood the debt will be repaid and can potentially allow the Town to borrow at lower interest rates, saving taxpayers’ money over the life of the bonds.
“This is a well-deserved bond upgrade for the town. It takes years of steadfast commitment to Clayton’s finances and policy driven actions to achieve this historic bond rating for Clayton,” said Mayor Jody McLeod. “I am proud of the hard work and dedication that’s been given to make this possible.”
Finance Director Robert McKie, who received the news from Moody’s said, “This upgrade is further proof of the Town’s solid tax base, as well as the commitment of the Council and Town staff to practice good fiscal health policies throughout the year that begins with the annual budget process, which serves as the blueprint for upcoming fiscal year.”
Moody’s release states, “The Aa1 rating recognizes the Town’s solid financial position following strong growth in its principal operating revenues (property taxes and sales taxes) over the past few years as the Town’s population has continued to increase and the tax base has rapidly expanded. The growth in revenues have driven consistent operating surpluses, which have led to cash and fund balance levels well above peers.”
According to Moody’s, the financial position is likely to remain healthy for the foreseeable future because of the Town’s conservative fiscal management and the ongoing growth
Just because the town bond rating was raised, does not give the town the green light to spend more money to line the pockets of the town’s good old boy network. What it should mean is that the town should lower it’s taxes and give some of that savings back to the citizens of Clayton who have bore the burden of carrying the town out of its financial crisis from years ago.