Mayor Sarno and the city’s finance team made the announcement today.
In a press release sent to ABC40 this afternoon, Standard & Poor’s Ratings Services says, “(It was) based on our view of the city’s progress toward rebuilding its reserve levels, which is due, in part, to a proactive financial management team that took control of the city’s finances after a period of commonwealth oversight.”
There were several factors the S & P cited as the reasons why they decided to increase Springfield’s credit rating. They include, strong total available general fund balance that management expects to maintain, strict adherence to financial policies, significant management decisions/actions to balance the budget, full repayment of state loans in fiscal 2009 (which were related to the city’s 2005 budget deficit) and low debt.
“This is a tremendous accomplishment for our City and demonstrates our commitment to our strict financial policies,” says Springfield’s Chief Administrative and Financial Officer TJ Plante, “I am happy to report that we as a City have not only taken ownership and accountability for our finances, we did so while grinding out the great recession and maintaining vital services.”
Mayor Sarno says the city’s goal will continue to be efficient, effective and compassionate delivery of services.