ELECTION 2011: Chester has a stable economic outlook

In August, I posted the announcement that Chester receives an ‘A’ rating from Standard and Poor’s.

What that proves is that since 1995 when Chester petitioned the Commonwealth of Pennsylvania for assistance under the Financially Distressed Municipalities Act (Act 47), the administration has successfully implemented its recovery plan which has caught the attention of Standard and Poor’s.

There is no evidence that Chester has ever been rated in the past which makes this rating even more significant.

Just as important to financial institutions as an ‘A’ rating is, Standard and Poor’s also determined that Chester’s financial outlook is ‘stable’.

With this great news, The Butler Team went right to work to refinance an old 2006 debt that we were paying 5.5% interest on, and are now paying 1.25%, realizing a $500,000 savings to the city over the length of the loan.

Thankfully, Chester no longer has to take out loans to keep the lights on or make payroll, but there are some capital improvements that they can borrow for at the best rates we’ve been able to secure in a very long time. 

With the 2012 budget being drawn up right now, I expect that The Butler Team will use their new financial muscle to go after some capital improvement loans while the going is good.

There’s a huge advantage to keeping the financial team in place that has turned the city’s economic condition around over the past 10 years. These guys have proven that they know what they’re doing. If Butler goes, so will they.

A scary thought.