Press Release
City of Novi maintains Bond Rating - Standard & Poor’s confirms AA+ rating and stable condition
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CONTACT: Sheryl Walsh, (248) 735-5628
FOR IMMEDIATE RELEASE
NOVI, Mich., January 28, 2010 – The City of Novi received positive financial news for residents and business members in conjunction with refunding bonds to save on debt service payments with a confirmed high quality credit rating by Standard & Poor’s.
Standard & Poor’s, which provides credit ratings and other financial analysis, has confirmed the City of Novi’s general obligation bonds as AA+. Standard & Poor’s defines an AA+ rating as a City “having excellent financial security and being highly safe.” The confirmed rating comes following a rating request pursuant to two refunding bond issues.
“The bond rating confirmation is one objective measure of how the City is managing taxpayer dollars,” said Novi Mayor David B. Landry. “Given the financial conditions of many private entities and the status of the general Michigan economy, this confirmation is outstanding news that the City of Novi is making sound financial decisions.”
Novi City Manager Clay J. Pearson noted, “We’ve made decisions and maintain practices that keep us at a high credit rating, sometimes tough decisions to change and adapt to the economic climate. The Standard & Poor’s rating and the upcoming sale of refunding bonds is a great affirmation of the work being accomplished here.”
Standard & Poor’s notes that “Novi’s reputation as a desirable residence for professionals has reinforced its economic stability. In our opinion, wealth and income levels as indicated by median household effective buying income were very strong at 157% and 154% of the state and national averages, respectively. The city’s unemployment rate averaged 4.5% in 2008, which was well below the state average of 8.4%.”
The confirmation goes on to state that “Novi has maintained a strong financial position despite previous reductions in state-shared revenues, the City's second-leading operating revenue stream, the City had built up its reserve levels dating back to fiscal 2003…management formally revised the reserve policy, to maintain between 14% and 18% of expenditures in reserve.”