Moody’s increased the city’s rating to Aa3, a two-step upgrade from its most recent A2 status, Mayor Miro Weinberger said at a press conference on the City Hall steps. That’s six steps higher than the Baa3 rating in 2012 that put it on the verge of junk bond status.
Moody’s report notes the city strengthened its standing by increasing its cash reserves; settling union contracts, including pension program cost-sharing; and resolving financial woes at Burlington Telecom, notably through its sale to Schurz Communications this March.
In 2011, Citibank sued the city for $33.5 million to cover the cost of equipment it leased to the ailing telecom. The city settled the suit for $10.5 million during Weinberger’s first term as mayor.
This week’s upgrade marks the first time the city has held a “Double A” credit rating in a decade, the mayor said. The milestone was a personal goal, he said, recalling his pledge as a mayoral candidate eight years ago to restore the city’s financial health.
“After years of hard work, focus and persistence, we have fully delivered on that promise,” Weinberger said.
The mayor touted other accomplishments as he stood at a podium in front of a cadre of smiling city officials. He said his team has resolved the 27 deficiencies noted in the 2012 financial audit.
The upgrade will have tangible effects: For one, taxpayers will save $5.1 million in interest payments on the $70 million Burlington High School and tech center renovation, School Board chair Clare Wool said. The city and school share a bond rating, the mayor said.
“Our goal is to attract families to this thriving city, and we do so with fiscal management and well operating schools,” Wool said. “This is an anomaly in the state of Vermont to be able to secure this funding.”
City Councilor Joan Shannon (D-South District), a realtor, likened the city’s improved rating to a homebuyer getting a higher credit score and benefiting financially.
“Burlington has strong social and environmental values but without fiscal stability, we do not have the money to invest in those values,” Shannon said. “An improved credit rating lowers the cost of borrowing money … and allows us to do more with every tax dollar we spend.”
Weinberger said the city will save nearly $1 million on the $13 million in bonds it will seek this fall.
“This signals to business owners and homeowners that we are a stable, well managed city,” the mayor said. “We are a place that is worth investing in.”
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Throw all that money in the pit!
He can use that money for paving City Hall park, settling wrongful death/police brutality suits, redesigning the pit, saving Christmas, building a bike lane to the moon, creating a fleet of electric bikes that work in snow, or preserving some of his ego from recent setbacks not previously mentioned.
Miro says the bond rating was a “personal milestone”. Yay, you did it, and sold the City’s soul in the process.
Please resign before you do any more damage.
“Yay, you did it, and sold the City’s soul in the process.”
Really? That’s a laffer. By “soul” are you perhaps referring to the debt-ridden, junk-bond, decaying soul that the old hippies created and bequeathed to the city’s residents?
I hope this doesn’t post twice but…
Miro hasn’t fulfilled his promises. His number 1 promise was to help with the homeless people. Has he? That’s a big no! What about the pit that he’s being secretive about? He probably has no idea what is going on there except he got conned by his good friend Don The con. Next, what about the Burlington High construction? It’s to late to start anything this year. And housing which he was supposed to work on. Not happening! He’s a typical politician that says what people want to hear but only does things to suit himself…
Thank you Miro for the great work you and your team are doing!
This is one of the many reasons why Miro will get re-elected because on the fundamentals of running a city he is boss. People may differ with him philosophically but he pretty much fixed all the progressive boodoggles he inherited. Burlington will re-elect him because he is a sound financial manager and saves taxpayers money. Could anyone imagine what the tax and financial outlook would be had the progressives remained in power the last 7 years? The Pension fund liabilities, Burlington Telecom, Airport financing fiasco, were all created by Progressives and Miro fixed them all without significantly raising taxes.
Hasnt done anything for the poor? Miro created the first permanent wet shelter in Burlington, doubled the amount of money for affordable housing, and increased city money/efforts to alleviate the heroin epidemic which is one of the root causes of homlessness. You have to give Miro some credit for this Gigrape52, Like all municipalities across America, Burlington has a homeless population that defies easy fixes.
Housing is a factor of supply and demand. Until enough housing is built in Burlington it will be expensive.
Oh wait Gi Grape wants to fix it without allowing for any new units, taller buildings etc, Just take money from others
The wet shelter was created by COTS and not by Miro. It is only open a few months a year. Also the so called affordable housing is not low income housing which there is a big difference! There should be rent control to help with the problem of the high rents landlords are charging especially for the slummy apartments in this city! COTS is the only organization that cares about the homeless people and tries to help them..
I cannot disagree more with the Mayor on the issue of the F-35 fighter jet but, putting that aside, he does deserve huge credit for this. Clare Wool and Joan Shannon state it well.
As for the TallMall pit, they should have simply proceeded under the original existing zoning and original parking requirements. That never required a special ballot measure to override. Without all the extra demands that forced the developer to ask for extra height exemptions in order to still make the profit. It could have been done by now. It may not have had the extra subsidized affordable housing but the increase in market-rate housing would itself have relieved some pressure on rents and increased property tax revenue. Plus, the preservation of UVM-Fletcher Allen jobs downtown, etc. would itself have been big win. Tragic for everyone involved how this has played out.
“There should be rent control to help with the problem of the high rents landlords are charging especially for the slummy apartments in this city!”
You think the rental housing situation in Burlington is “slummy” now? Just wait until you add rent control.
There is one answer to the high rents and slummy conditions in the Burlington rental housing market. Build rental units at all levels of affordability. Build, build, build.
Oh, but wait. I forgot: even though we complain incessantly about the cost and condition of the rental housing stock in Burlington, we’re opposed to absolutely anything being built.
Miro is a socialist joke just like the other lazy lying socialist joke mayor before he ran for Congressman then a senator. 2 big clowns of Burlington…
DONNA, I agree with you. Miro is a big joke!