Once more there is good financial news for the City of Milton taxpayers. Moody’s Investors Service reaffirmed the City of Milton’s credit rating of A1 in a report issued August 17, 2016. The rating was made as part of the City issuing $7.475 million in General Obligation Bonds. A1 is four levels below the highest rating of AAA. An A1 rating is considered an upper medium investment grade. The higher the rating, the lower the City of Milton should pay in interest costs for borrowings.
The report listed several strengths for the City of Milton including:
City’s management team is strong
- Adhering to long-term capital plans
- Favorably located within commuting distance to large regional economic centers
- Solid financial operations with strong reserves
- Conservative budgetary approach
As a result of current market conditions and excellent bond rating, the taxpayers of the City will save over $1 million in interest expenses because the main purpose of the bond sale was to refinance existing debt. $128,000 of the savings was directly related to an early refinancing on bank loans issued by First Community Bank and Bank of Milton in which they allowed the City to refinance earlier than they legally had to.
The interest savings breaks out into the following:
- General tax levy = $475,000
- TID #6 = $387,000
- Water Utility = $55,000
- Sewer Utility = $86,000
- Library donations = $13,000
For more information, please contact Finance Director/Treasurer, Dan Nelson at 608-868-6900 ext. 3 or firstname.lastname@example.org.