The City of Ansonia’s bond rating has been upgraded, Mayor David Cassetti announced in a prepared statement Thursday.
“This rating increase is rock solid evidence from an impartial third party that Ansonia’s financial condition is stronger than ever,” Cassetti said.
The city’s bond rating is now AA.
It had been AA-.
The new rating puts it two positions from AAA, the highest rating possible.
The upgrade from the Standard and Poor’s credit rating agency comes at a time when the city is preparing to ask voters to approve millions of dollars in borrowing for capital improvements.
The possible bond upgrade was one of the reasons cited by Aldermen in delaying a referendum on the capital plan in April. That’s because it allows the city to pay less on interest on the money it will borrow for the improvements.
The S&P report cites recent budget surpluses, as well as the city’s fund balance.
The fund balance has been a major subject of debate between Democrats and Republicans during Cassetti’s administration.
“Ansonia’s budgetary flexibility is very strong, in our view, with an available fund balance in fiscal 2015 of 25 percent of operating expenditures, or $15.9 million,” the report says.
It goes on to note that the city has committed $2.5 million of its fund balance to deliver a slight tax break to residents next year, but “we expect the city will likely maintain its very strong budgetary flexibility” if the fund balance stays above 15 percent.
The report is posted below.