A recent trip to Chicago brought some good financial news to the city of Lima. Finance Director Steve Cleaves and other city officials went before the Moody's rating agency to try and keep the city's A1 rating that was obtained in 2010.
After laying out the city's financial picture, Moody's kept the 2010 upgrade in place, while other municipalities are seeing downgrades. Cleaves says because of the rating they got a low interest rate on the bond, saving 293-thousand dollars, and locking in a rate that will probably go higher during the 25 year life of the bond.
As far as investments, the city has 28 million dollars in investments. They can't play the stock market, they invest in certificates of deposit, or CD's. Interest rates for 2 year CDs is less than one percent. The city's investment income prior to 2008 was upward of a million dollars a year. It is now 200-thousand dollars.
Cleaves says they made adjustments a few years ago for that downturn, plus income tax collections are up.
