A steady employment base, increased investment in the downtown and increased business investment has helped the City of East Lansing get an AA+ bond rating from Fitch Ratings.
Fitch Ratings assesses municipalities’ financial stability based on a variety of financial factors.
“The city’s general fund balance has improved in recent fiscal years due to gains in the local economy and its strengthened financial management practices,” according to Fitch Ratings.
A good rating from Fitch Ratings tells lenders that the city is financial stable and meets its debt obligations.
“The city’s five-year forecast anticipates continued increases in reserve levels, and the recent adoption of financial policies and controls should guide financial performance,” according to Fitch Ratings.
Mary Haskell, with the City of East Lansing, says the city has received fairly good ratings for the past few years.
“With a good ranking we get more favorable rates on bonds and we’re more attractive to investors because it ensures them that we have financial controls and policies, and we’re stable in how we manage our government,” she says.
Fitch Ratings notes that the City of East Lansing maintains healthy employment rates even though the many regions in the state are struggling. Fitch Ratings also noted that the city’s property tax base has grown five percent every year since 1993.
Source: Fitch Ratings
Ivy Hughes, development news editor, can be reached here.
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