Newburyport earns AAA mark from financial-rating service

Citing good management with "strong" financial policies and practices, a major agency recently reaffirmed the city's AAA bond rating, which lets Newburyport buy bonds at lower interest rates.

S&P Global Ratings cited the following factors in support of its opinion: A strong economy; very good management; a strong budget performance and an operating surplus, along with strong budgetary flexibility.

Mayor Donna Holaday announced the top rating at a City Council meeting Monday.

S&P Global Ratings is a major financial institution in New York that provides independent investment research, including ratings on various "investment instruments."

Newburyport-Mass-plum-island-BL-m443247
plum island fotos: taken July 5,6 2008. the marshland is the Parker River National Wildlife Refuge on Plum Island, which has hiking and biking paths, parking lots and picnic areas. the inn is officially called blue: The Inn on the Beach; www.blueinn.com. The town is Newburyport, Mass., www.newburyportchamber.org.

S&P Global also said the city has a strong debt and contingent liability position "with debt service carrying charges at 5.6 percent of expenditures and net direct debt that is 108.3 percent of total government fund revenue, as well as a low overall net debt at 3 percent of market value."

"I am very pleased with this high bond rating," Holaday told the council. "It will enable us to get attractive borrowing rates in the future."

In a separate development, Holaday reported that the School Department's proposed operating budget for fiscal 2018 is about $31.8 million, "representing an increase of $1,075,509. Salaries represent $23.6 million and expenses $8.1 million."

The mayor said staff increases include a full-time world language teacher at Nock Middle School that allows students to have Spanish class every other day and the addition of time for STEM teachers at Bresnahan and Molin schools.

"The School Committee anticipates voting on the FY18 school budget on April 25," Holaday said. "We continue to struggle in closing the gap in the city budget but we anticipate submitting a balanced budget to the council on Monday, May 8."

Also, city officials say the community has received a $130,000 grant from the Tower Foundation to fund a regional preventative initiative to foster model youth behavior

The three-year grant means the schools can hire a counselor to work with young people and create programs.

The grant was obtained by grant writer Nancy London and Andrea Egmont, director of youth services.

Also, Holaday said a final draft of a purchase-and-sale agreement has been received from New England Development for land at the corner of Titcomb and Merrimac streets, where the city plans to build a 207-space parking garage.

The City Council will review the contract.

Before a purchase is made, city officials will meet with state and federal officials to confirm funding for the parking lot project.

The federal government committed $2 million, but it was recently reported that the sum will likely be $1.5 million.

Also, state transportation department officials had said the city would receive a total of $5 million in construction support in 2016 and 2017, but no funding has been conveyed yet.

Holaday said municipal leaders would review all finances before finalizing a purchase agreement with NED.

Tribune Content Agency
Primary bond market Interest rates Ratings Massachusetts
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