Moody’s Investor’s Service announced recently that it has upgraded the Town of Erie’s general obligation bond rating. The bonds issued by the general fund were assigned a new rating of “Aa1”, reflecting an upgrade in credit quality from the previous rating of “Aa2”, Moody’s second highest rating.
Moody’s identified several credit strengths which factored into their decision to upgrade the bond rating, including solid financial operations with ample reserve levels; rapidly growing population and expanding tax base outside of Denver metropolitan area; and low debt and pension burdens.
According to Moody’s report, Erie’s fiscal management is expected to continue with support from growing revenue streams, including sales tax and developers fees as the town continues to expand. Moody’s also commented positively on the ability to manage the growth with our pay-as-you-go capital plan and the maintenance of substantial reserves levels, which allows financial flexibility.
The Town has approximately $16.2 million of outstanding general obligation debt used to finance construction of the Erie Community Center and the Public Safety Building. This debt is repaid through a property tax mill levy (4.512 mills in 2018).
View the complete credit opinion here.