The City of Copperas Cove has received notification of an improved bond rating from Standard & Poor’s as part of their ongoing surveillance. S&P’s Ratings Services raised the ratings on the general obligation bonds of 19 municipalities in Alabama, Louisiana, Mississippi, Oklahoma, and Texas, based on a qualitative assessment in conjunction with credit ratio analysis. Copperas Cove was among those cities that Standard & Poor’s believes to be fundamentally strong, at least in the ‘A’ category or better.
The City finished fiscal year 2008 with an unreserved general fund balance of $3.7 million, or in S&P’s view, a very strong 25% of operations. Based on unaudited figures, management expects to finish fiscal year 2009 with similar reserve levels. Overall debt levels for the City were considered low at 2.8% of market value. The amortization schedule is average, with all debt retired in 20 years, and fiscal year 2008 carrying charges are moderate at 10%.
The City’s bond rating improved from an A– to an A+. “The improved bond rating will allow the City to issue debt at lower interest rates which, in turn, saves taxpayer dollars”, said Wanda Bunting, Director of Financial Services.