On February 8th, Moody’s Credit Rating Company upgraded the City of Lawrence’s credit rating to A2 from A3. This rating upgrade is the second time Lawrence has received rating increase from Moody’s during Mayor Rivera’s term. The rating upgrade with a stable outlook validates the city’s financial recovery and will directly impact residents with favorable interest rates. “We will continue to do all the right things to ensure a strong financial future. Budget conservatively, spend wisely and keep taxes low,” said Mayor Dan Rivera. “We will also continue to invest in the capital needs with our fourth Capital Improvement Plan coming in the FY2020 budget. If the city passes the FY2020 budget on time and with no drama, it will be the 10th year in a row that we have passed balanced budgets.”
The rating upgrade exemplifies the city’s hard work and commitment to improve its financial practice. Additionally, the city has double digit free cash reserves of $15M for the first time.
The upgrade of the city’s rating to A2 recognizes the prudent management of the city’s financial position and its effort to build its reserves while continuing to pay down its outstanding debt. The city has stabilized its financial position through more conservative fiscal management, and improved financial policies, resulting in a larger reserve and healthier cash flow position. As quoted in the Moody’s Investor Service, the city’s credit rating increase is “..stable given strong financial oversight by city management and the continued assistance of the state overseer.”