Standard & Poor’s boosted by two notches to AA-minus the city of Zeeland and its building authority due to a strong financial position supported by a trend of positive general fund operations.
The review was conducted in conjunction with the city’s planned issuance of $2 million of limited-tax general obligation capital improvement bonds.
Analysts said the upgrade reflects the city’s proximity to Grand Rapids and its surrounding area’s diverse economic and employment base, extremely strong wealth and good income indicators, and taxing flexibility as it funds operations with an operating millage below the maximum allowed.
A high per-capita debt burden and highly concentrated property tax base offset some of the credit’s strengths.
“We believe the city will continue to adjust its budget as necessary to ensure the maintenance of balanced financial operations and reserves consistent with internal policies,” said analyst Daniel Zuccarello.
The downgrade affects $6 million of debt.