City benefits from upgraded rating

By G. Michael Dobbs, Managing Editor

CHICOPEE City Treasurer Ernest LaFlamme has announced the city's bond rating has been upgraded from A3 to A2 by Moody's Investor's Service. The result for taxpayers? The city will save $49,000 on an $11 million 20-year bond to finance part of the new Chicopee Comprehensive High School and other school building repairs.

LaFlamme told The Chicopee Herald that re-evaluations such as this one don't happen very often.

The change came after a recent presentation LaFlamme organized for Moody's officials at the Chicopee Public Library. Attended by Mayor Michael Bissonnette, city department heads and other officials, the Moody's officials received a comprehensive look at the city that lasted several hours. The presentation concluded with a tour of the city.

LaFlamme had tried a similar presentation four years ago, and although the investment officials said the city was in good shape, the bond rating did not change.

LaFlamme said he has been talking to them since, hoping to have another chance to present the city's story.

"They were impressed," LaFlamme said.

Moody's cited "solid growth in all sectors of the city's tax base, a sound financial position with a growing stabilization fund, sound financial management and an affordable debt burden as positive credit factors."

The city received six bids on the bond issue with UBS Securities winning the bid with an interest rate of 4.197751 percent.

LaFlamme said the upgrading of the city's bond rating was due to the "the mayors leadership, responsible decision-making by the Aldermen, strong financial management by the treasurer's and City Auditor's offices."

"Another benefit of the upgrade is that it represents an unbiased, professional assessment of the improvement in the city's condition," LaFlamme said." It shows we're on the right track."