FOR IMMEDIATE RELEASE
October 8, 2015
Contact: Jennifer Kaulius
802.324.2505
Chief Administrative Officer Releases 2015 Annual Stability Bond Proceed Report
Documents Two Years of Growing Savings for Burlingtonians
Chief Administrative Officer (CAO) Bob Rusten has released the Annual Stability Bond Proceed Report, required by 2013 City Council resolution.
The report summarizes the role the Fiscal Stability Bond played over the last three years averting possible fiscal crisis and contributing to the City's improved credit rating.
In addition, using the same methodology for the Fiscal Year 2015 (FY15) report as in the first report for FY14, the CAO estimates that the Fiscal Stability Bond has saved Burlingtonians between $418,000 and $1,735,000 over the past two years in local bonding and financing costs. The estimate is presented as a range to acknowledge that it is not possible to know what would have happened to the City's credit rating if it had not issued the Fiscal Stability Bond. The upper end of the range of the savings estimate assumes that the City would have suffered a further credit rating downgrade to "junk bond" status in the last three years had the corrective Fiscal Stability Bond not been issued, as Moody's Investors Service indicated was likely with its "negative" credit rating outlook in 2012. The report also acknowledges that the impact of the Fiscal Stability Bond cannot be isolated from other elements of the City’s financial improvement in recent years that may too have contributed to these savings.
"In November 2012, 72% of Burlington voters committed to rebuilding the City's damaged finances by supporting the City's first Fiscal Stability Bond," said Mayor Miro Weinberger. “The CAO's report demonstrates that that commitment is paying off – not only have we avoided a fiscal crisis, but the City's improved financial standing is now keeping considerable dollars in the pockets of Burlingtonians instead of bond traders."
“The Fiscal Stability Bond was the first and clearly instrumental step that has brought our City’s finances to a place where our bond rating is improving and our fiscal outlook has positive momentum. For the first time in several years, our fund balance is positive. The voters of Burlington can be proud of the decision they made to support this bond,” said Ward 6 City Councilor Karen Paul, who was the original lead sponsor of the Fiscal Stability Bond resolution.
On Monday, October 5, the Board of Finance approved the Fiscal Stability Bond FY15 report and referred it to the City Council.
Please visit this link to view the Annual Stability Bond Proceed Report, dated October 1, 2015.
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