Moody's Investors Service said it has upgraded to A1 from A3 the rating on the city of Alachua, Fla.'s $7.2 million of non-ad valorem debt outstanding.
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The upgrade to A1 reflects the city's significantly improved financial position resulting from an increase in property tax and utility rates and management's commitment to restoring and maintaining reserves at a healthy level.
The A1 rating also incorporates the city's modestly-sized tax base, average resident wealth levels, solid level of non-ad valorem revenues, average debt burden, and elevated pension liability.
