Rochester Hills Receives ‘AAA’ Rating from Fitch

Strong Financial Position and Good Management Practices Cited

Rochester Hills, Michigan– The City of Rochester Hills is proud to announce that it has received an ‘AAA’ Rating from Fitch Ratings, the leading global rating agency. The recent ratings review by Fitch affirms the ‘AAA’ rating with a stable outlook of the city of Rochester Hills’s general obligation limited tax capital improvement bonds, series 2002, as well as the outstanding maturity of the Rochester Hills Building Authority’s general obligation limited tax bonds, series 2002.

According to Fitch’s assessment, key rating drivers include; the city’s internal funding of capital projects combined with a rapid debt payout, as well as the lack of future borrowing plans, should allow the city to retain its favorable debt profile. Additionally, the presence of ample general fund reserves and the retention of margins under operating millage limits provide vital flexibility as the city weathers the economic downturn.

“While the jobs market has been contracting steadily over the past decade, several new employers are expected to add over 850 new jobs to the local economy in the near future, which should strengthen the employment base,” states Mayor Bryan K. Barnett.

 “We’ve seen a recent pickup in our commercial/industrial activity, including a 28% increase in building permits and a decline from 15% to 10% in our vacancy rates this year. We also have a favorable unemployment rate, which was 7.8% in June and trending downward, and remains well below the state level of 13.1% and the national level of 9.6%,” states Keith Sawdon, Finance Director.

The city just recently presented its multi-year budget for FY2011, along with FY2012 and FY2013 to council; this sophisticated multi-year approach will allow the city to plan for economically induced revenue declines. The 2011 budget calls for a 9% decline in revenues and a 12% reduction in expenditures with no appropriation of fund balance for the next 3 years.

Established in 1984, the City of Rochester Hills supports more than 200 tech-savvy businesses and offers a complete and diverse community. Voted one of the top 100 best places to live in 2009, the City of Rochester Hills is committed to being the preeminent place to live, work and raise a family.

About Tom and Ann Gendich

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