West Bloomfield

S&P keeps WB’s credit rating at AA+

By Eric Czarnik
C & G Staff Writer

WEST BLOOMFIELD — The credit rating firm Standard & Poor’s thinks West Bloomfield’s financial picture is more than double-A-OK.

S&P chose to maintain the township’s AA+ rating with a stable outlook, according to a Jan. 25 report. In contrast, the U.S. government’s rating is currently AA+ with a negative outlook after losing its AAA rating last summer.

The S&P report cites several factors in the decision to keep West Bloomfield’s credit rating. It says the township benefits from the Detroit-area economy, and township households have a median effective buying income that is 170 percent of the general U.S. effective buying income.

Although the township’s tax base and home market values have diminished over the last few years, the report says these trends reflect “a correction in the township’s housing market and general market influences.”

“Despite the decline in property tax revenues, the township has maintained its very strong, in our opinion, financial position, with increased millage and expenditure reductions,” the report says.

S&P also said West Bloomfield ended fiscal year 2011 with $9.2 million in a combined unreserved general and public safety fund balance, or 24 percent of those two funds’ total spending. The township’s financial management was deemed “good” and its overall net debt burden “moderate.”

Township Clerk Cathy Shaughnessy said the score is a positive indicator as the township weathers the economy. She credited S&P’s positive report to officials’ fiscal conservatism and the residents’ willingness to vote for a public safety millage renewal and increase last November.

“We have an excellent credit rating now, so ... if we need to bond anything, we get the best interest rates,” she said. “The ramifications of these are all positive — very, very positive.”

Because the credit ratings get published, anyone who is looking to move to West Bloomfield or invest in it may have the information handy, Shaughnessy added.

Township Supervisor Michele Economou Ureste attributed the AA+ score to several, more specific factors.

She said the township successfully automated and streamlined operations that enable staff to do more with fewer people. She also praised regulations on rental inspections and vacant property registrations for safeguarding property values. Union concessions, energy efficiency and economic redevelopment rounded out other helpful reforms, she said.

“This credit rating reflects all of the proactive measures that have been taken over the past three years to drastically transform the township in order to survive the economic downturn,” she wrote in an e-mail.

West Bloomfield follows other local governments that recently maintained their S&P scores. Last year, Keego Harbor maintained its A+ rating, and Oakland County maintained its AAA bond rating, the highest score possible.

For more information about West Bloomfield, visit www.wbtwp.com. To learn more about S&P, visit www. standardandpoors.com.

You can reach C & G Staff Writer Eric Czarnik at eczarnik@candgnews.com or at (586)498-1058.