Last week, it was announced that the City of Revere has more than $11 million in free cash, and this week, Mayor Brian Arrigo and Finance Director George Anzuoni announced that the city’s bond rating has gone up to AA-stable from AA-negative.
“On top of the certified free cash, this shows we’re moving in the right direction,” Arrigo said. “It’s great news for the city.”
He noted that one area of the report addressed the city’s retirement system and OPEB (Other Pension Post Employment Benefits) obligation. OPEB is mostly health insurance and life insurance benefits. He said the city is continuing to make an investment in OPEB and reduce the obligation over the next couple of years.
“I was pleasantly surprised to see that the one thing that they had pointed to as a weakness is something that we plan to address,” Arrigo said.
According to Standard and Poors, the rate reflects the city’s improved market value and budgetary performance. It was noted that the city has a strong economy and strong budgetary performance with operating surplus in the general fund and more.
In its summary, Standard and Poors also said Revere Beach was once known as the Coney Island of New England.
“We believe in Revere’s very strong liquidity, and planned maintenance of budgetary flexibility further support the rating,” Standard and Poors stated. “We do not expect to change the rating within the two-year outlook.”