Cascade Charter Township Earns Aaa Rating
Credit Profile Bolstered by Tax Base, Financial Position and Modest Debt Burdens
Cascade Township, Michigan, Feb. 1, 2018 – Cascade Charter Township’s credit profile rating has improved from Aa1 to Aaa – the highest ranking a municipality can achieve.
The rating comes from Moody’s Investors Service, a leading provider of credit ratings, research and risk management. Cascade’s new Aaa rating applies to $4 million of outstanding general obligation and limited tax debt, and demonstrates the lowest level of credit risk. This will make it easier for the Township – and safer for investors – to bond municipal projects such as utility infrastructure and public improvements, among others. Additionally, Moody’s has updated the Township’s outlook to stable.
“This is an incredible accomplishment for a municipality of our size,” said Ben Swayze, Township manager. “The information provided by Moody’s analysis offers validation of the sound fiscal management of our Township. Everyone – especially the many Township committees and employees and the Township Board – should be proud of the upgrade, which will provide a significant benefit if we bond for future projects.”
According to the report, Cascade’s credit profile was bolstered by its sizeable, affluent tax base; extremely strong financial position with strong fund balances; and its modest debt and pension burdens. More detailed credit considerations stemmed from the Township’s low pension liabilities, including a closed defined-benefit plan and lack of other post-employment benefits, as well as its strong management practices, conservative budgeting and sophisticated capital plan.
In upgrading the Township’s outlook to stable, the Moody’s report noted, “The Township’s financial position will remain strong and its debt and pension burdens will continue to be modest.” The report also explained the company’s expectation that Cascade’s healthy economy and solid tax base will remain a credit strength.
In addition to its ranking with Moody’s, the Township also holds an Aaa rating by Standard & Poor’s, a financial service company that provides market intelligence in the form of credit ratings, research and thought leadership.
Collectively, the Aaa rating is rare for municipalities of Cascade’s size.
About Cascade Township
Home to more than 18,000 residents, Cascade Township is committed to serving the public by providing the finest community services possible with respect, efficiency and integrity. With the Thornapple River at its heart, Cascade Township is recognized as an excellent place to live, work, play and raise a family. For more information, visit http://www.cascadetwp.com/.