Annapolis, MD (12-18-18) Moody’s Investors Service recently announced it has affirmed the City of Annapolis’ Aa2 general obligation bond rating with a positive outlook.
The report credits the city’s new management team for implementing new financial policies and budget processes to curb cost overruns, fund pension obligations, match recurring revenues to recurring expenses, reduce illiquid receivables, and rebuild reserves and liquidity.
According to Moody’s: “The outlook reflects the likelihood that the city’s financial position will strengthen, following the substantial reduction of its illiquid receivables from enterprise funds and projections of meaning increase in its cash position for fiscal 2019. Importantly, the outlook is predicated on the likelihood that the city will be able to maintain its reserves and liquidity at these improved levels over the near term. The outlook further reflects positive development in the city’s tax base after a substantial 10.4% increase in assessed valuation in 2018.”
“This upgraded credit rating is a testament to the exceptional fiscal management of our city manager, Teresa Sutherland, and Finance Director, Jodee Dickinson, and their team’s exhaustive efforts to right the financial ship of the city. It is also a testament to the City Council’s willingness to fully fund our pension obligations for the first time in more than a decade, while eliminating the city’s structural deficit and meeting the demands for excellent service our citizens deserve and pay for,” said Mayor Gavin Buckley.