To: News Media
From: City of Mansfield
Subject: Mansfield Credit Rating Improves
Contact: Linn Steward
Mansfield Finance Director Linn Steward, CPA today announced that Moody’s Investors Service has removed the “negative outlook” from Mansfield’s credit rating of Baa1.
The rating review was in response to Steward’s request to Refund 2002 Various Purpose Bonds on behalf of the City of Mansfield.
As a result of lower interest rates and improved financial outlook Director Steward projects the city can save nearly a quarter million dollars over the life of the bonds.
The original debt was the result of the issuance of various purpose bonds in 2002 totaling $4.6 million dollars. Funding was used to equip fire stations, acquire fire equipment and vehicles, construct the new fire station and remodel buildings as well as various public service projects at the Piper Road Industrial Park and Airport Industrial Complex.
Moody’s noted that the rating improvement was the result of the City of Mansfield’s effective implementation of its financial recovery plan, improved financial position and consecutive General Fund operating surpluses that helped to build reserves.
On Tuesday, following months of work by elected officials and staff, Director Steward presented a balanced 2013 Budget for consideration to Mansfield City Council which included the elimination of the Safety Fund Deficit.
In addition to the budget the Finance Director submitted a request to establish a Budget Stabilization Fund toward a goal of stabilizing the cities financial outlook and sustainability into the future.
"This is great news and the timing could not have been better following the balanced budget proposal, and elimination of the Safety Fund deficit", Steward said.
"Our Elected Officials and Council have been great to work with and we look forward to continued progress and development of Strategic Plans that will keep us on track".