Standard & Poor's said Wednesday it raised its long-term and underlying rating to AA-minus from A on the Chelsea District Library's outstanding general obligation bonds as a result of the Michigan library's recent strong financial performance, including a very strong general fund balance, which management indicates it plans to maintain given completion of a major capital project several years ago.
The outlook is stable.
"Following two large draws on general fund reserves in 2006 and 2007 for expenses related to a new facility, the library has re-built its fund balance to levels we consider very strong," said analyst Caroline West.
The rating also reflects the library's access to the large and diverse Ann Arbor, Mich., employment base, strong economic indicators, good financial management practices, and moderate debt with limited capital needs.
High debt service carrying charges somewhat mitigates the above strengths.
Chelsea District Library is located in the northwest portion of Washtenaw County and encompasses four townships and all of the village of Chelsea.