Moody’s Investors Service said it has downgraded the rating on Olmsted Township, Ohio’s general obligation limited-tax bonds to A1 from Aa3, affecting $2.23 million of outstanding debt.
The bonds are secured by the township’s limited-tax GO pledge, subject to Ohio’s statutory 10-mill limitation. The A1 rating reflects the township’s narrow financial position with continued structural imbalances and limited cash reserves, a modestly sized tax base with recent valuation drops, and a manageable debt profile.
Difficult conditions in the township’s broader economy have contributed to the weakening of its finances over the past several fiscal years.
Major revenue streams including state aid, licenses and permits, and interest earnings, have declined significantly in recent years. Meanwhile expenditures have continued to increase, resulting in structurally imbalanced financial operations since fiscal 2003.
