The City of Neosho has received an “A” credit rating from Standard & Poor's rating services for the third consecutive year. The grade was given for the city's 2013 special obligation refunding bonds and 2012 certificates of participation. It is the third-highest score possible under Standard & Poor's major rating categories, though additional plus or minus sign designations can show the relative standing within those categories. By Standard & Poor's definition, an “A” credit rating means the City of Neosho has “a strong capacity to meet financial commitments” but is “somewhat susceptible to adverse economic conditions and changes in circumstances.” According to S&P’s report, the city received the “A” rating because of its “
very strong budgetary flexibility and liquidity.”
“The city has very strong budgetary flexibility, with reserves above 30% of expenditures for the past several years and no plans to significantly spend them down,” the report states. “Audited fiscal 2013 reserves were $2.1 million or 44.2 percent of expenditures. Reserves are expected to be approximately $1.7 million, or 30.3% of expenditures, at fiscal year-end 2014. Management intends to maintain reserves at 25% or more of expenditures, in line with its fund balance policy.” The “A” credit rating from Standard & Poor’s on the certificates of participation will help lower the city’s interest rate by at least a full percentage point or more as the city refinances its 2007 and 2010 lease purchase obligations. The refinancing is expected to save the city an estimated $366,000 between now and 2027, without extending the life of the bond series.
“The City of Neosho has made great strides to continue to strengthen our financial status and stability over the past three years,” stated Neosho City Manager Troy Royer. “Receiving this ‘A’ credit rating from Standard & Poor’s for the third year in a row substantiates the city’s continued efforts to remain fiscally responsible and economically and financially sound. I applaud the efforts of all of the city’s employees and management staff and our team effort to make this possible.”
For comments, please call City Manager Troy Royer at 417-451-8050 or email email@example.com