While we continue to invest in key areas, South Milwaukee’s financial position remains strong. But don’t take my word for it.
Moody’s has reaffirmed our strong Aa2 bond rating, saying it “reflects the city’s solid financial position and favorable location within the City of Milwaukee (A1 negative) metropolitan area. Fixed costs are elevated given an above-average debt burden, though is mitigated by rapid principal amortization.”
Additionally, “We regard the coronavirus outbreak as a social risk under our ESG framework, given the substantial implications for public health and safety. The coronavirus crisis is not a key driver for this rating action. We do not see any material immediate credit risks for South Milwaukee. However, the situation surrounding coronavirus is rapidly evolving and the longer term impact will depend on both the severity and duration of the crisis. If our view of the credit quality of the city changes, we will update the rating and/or outlook at that time.”
See the full press release here.
The rating was done to support $8.8 million in borrowing for capital projects, as part of the plan the South Milwaukee Common Council approved earlier this year, as part of our traditional two-year borrowing cycle. The list touches every department and includes $5.3 million inn local road and other engineering projects, such as alley and street repairs and reconstruction.
I’m proud we can continue to make these investments in our infrastructure … while remaining responsible stewards of taxpayer (your) money. The bond rating — and an interest rate of less than 2% we received for our borrowing, thought to be the lowest in the history of the city — shows we are doing both well.