City’s Fiscal Status Improves with Significant Operating Surplus in 2020
Mayor Neil Perry and Chief Administrative and Financial Officer (CAFO) Maggie Duprey are pleased to announce that, according to Moody’s Investor Service, The City of Methuen has been upgraded to an A3 stable rating. The city previously received a negative rating from Moody’s.
Methuen’s overall financial profile is improving after a period of fiscal challenges. Under the leadership of Mayor Perry and CAFO Duprey, in collaboration with the Methuen City Council, Methuen’s financial position has improved with a significant operating surplus achieved in 2020. In addition, long term liabilities and fixed costs are now rated as manageable.
“We are extremely pleased by the latest ratings from Moody,” says Mayor Perry. “The improvement shows that changes implemented by our department heads and employees, along with City Council oversight, have resulted in an A3 Stable rating. I am confident that our fiscal prudence will result in further improvements moving forward.”
The uncertainty of the COVID-19 pandemic has resulted in reduced state revenue and other fiscal challenges. The Commonwealth of Massachusetts is currently experiencing significant declines and delays in income tax and sales tax revenue.
Still, Methuen has been lauded for its sizeable, growing tax base outside of Boston, healthy resident wealth and incomes, and manageable long-term liabilities and fixed costs. The stable outlook reflects the city’s return to balanced operations, reserve growth and projected growth and improved financial management.