Moody's Investors Service said it upgraded the city of North Las Vegas, Nev.'s general obligation limited tax rating to Ba2 from Ba3 and maintained a stable outlook.
The upgrade to Ba2 for the city's GOLT ratings reflects relative financial stability compared to recent years, including timely adoption again of a city-wide balanced budget for FY2016 that includes a modest surplus for operating funds.
Financial performance is supported by the state's economic recovery and a rebounding tax base following the deep housing downturn.
However, the city is pressured by elevated fixed costs and remains reliant on uncommonly large transfers from the water and sewer utility to support critical services.
Also, management will negotiate new collective bargaining agreements with all labor groups over the next two years and, although still unknown, contracted provisions could pressure future operating costs.
