Woodstock Maintains A1 Credit Rating

The city of Woodstock's A1 credit rating has been affirmed by Moody's Investors Service. 

That rating, according to Moody's, "incorporates the city's sizable tax base that has experienced recent economic development and a return to structural balance in fiscal 2012 that is expected to continue in fiscal 2013, which combined mitigate the city's historically weak financial position."

However, the agency noted the outlook for the city remains "negative." It bases the outlook on "the city's recent trend of negative fund balance and limited liquidity position, which are expected to improve following a change in management that took place in 2012."

Chief Financial Officer Robert Porche took over in 2012 following the resignation of former CFO Henry Bucci. Bucci was forced to resign after financial audits discovered the department's inconsistent and questionable bookkeeping methods.

The rating affects $30.4 million rated debt out of the city's $42.4 million outstanding debt.

Moody's notes the city has a lot of positive indicators on its side, such as a "large, diverse tax base," a "willingness to return to structural balance following tax rate increase and expenditure cuts" and has a "manageable" burden of debt. 

However, Moody's states the city's "challenges" are its history of unbalanced operations, negative general fund reserves and a "narrow" liquidity. 

The city's rating could go up if fiscal year 2013 general fund balance ended in the black and sees a "sizable" increase in the taxable value of its digest.

City Manager Jeff Moon said the affirmation also notes the city has no issues with "unfunded pension liabilities," which he said is another positive indicator.

He added Moody's also recognized the city's improved local economy, alluding to the city seeing increased activity on the single family residential front, the opening of the Outlet Shoppes at Atlanta, the soon-to-be-opened Northside/Cherokee Towne Lake Medical Office Building and the city addressing the need to build up its reserve fund. 

"We made it through the Great Recession and maintained our rating with Moody’s, which is obviously positive," he added. 

Moon said the affirmation does not have any bearing on any previous bond issuances, and it only impacts any future plans to issue bonds. The city manager said the city has no plans to issue bonds in the future.

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