On March 7, Mayor Ruthanne Fuller reported that the City of Newton has once again received a rating of “Aaa – Stable” — the highest rating offered by Moody’s Investors Service. Newton is one of only 14 municipalities in Massachusetts with this rating.
Among the reasons cited by Moody’s in its rationale for this rating, Moody’s noted that Newton has:
- “…a strong and diverse economy within the Greater Boston metro area with high resident income over 200%of the US median and wealth …per capita of over $400,000”
- “…a healthy financial position bolstered by diligent and forward-looking fiscal management”
- “…taxpayer support for certain debt exclusions [to fund capital projects outside of Proposition 2.5 limits] …and the city’s aggressive funding commitment towards pension and OPEB liabilities”
- “…a modest fixed cost ratio.”
Moody’s summarized by saying this rating, “… reflects the expectation that the economy and taxpayers will continue to support the city’s financial position with satisfactory reserves and liquidity while managing a large capital plan and continuing to reduce the unfunded pension and OPEB liabilities.”
The City is issuing $29.1 million of municipal bonds, of which $17.1 million will be for the Franklin and Countryside school projects, Gath Pool, and athletic fields, while the remaining $12 million will be used to partially refinance, at a lower cost of interest, earlier bonds for the Carr School renovation and the new Angier School. In addition, the City is issuing $50 million of Bond Anticipation Notes (BANs) for Lincoln-Eliot/150 Jackson Road Elementary School and the Cooper Center for Active Living (NewCAL).
