When the City of Detroit filed for bankruptcy earlier this year fear grew that other Michigan cities would see their bond rating plunge. However the City of Troy learned yesterday Standard and Poor’s will keep the city’s General Obligation bond rating at “AAA”
Upon receiving the news Mayor Slater quickly gave credit to City Manager Brian Kischnick, Financial Services Director Tom Darling and the City of Troy employees. He stated they demonstrate ‘exemplary skill and management” in their handling of the city’s finances and budgets.
“Our conservative budgeting practices are the main reason for the positive actual result. Even if projected reserves are utilized, the City would still maintain very strong reserves,” Darling said.
The notification from Standard & Poor’s noted a stable outlook reflecting the expectation that city management will exert strong fiscal controls to protect its financial position.
Darling points out, “Troy has a 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, strong financial operations guided by sound policies and moderate debt burden.”
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