Evidence Continues to Mount - Priority Based Budgeting Supports Strong Ratings from Credit Rating Agencies

Here at the Center, we have been extremely interested for some time in how credit rating agencies (CRA's) would evaluate the Priority Based Budgeting (PBB) efforts of the communities we're working with.

Communities are seeking every possible means to prevent downgrades in their ratings. And the credit rating agencies are facing immense pressure to substantiate the ratings they report - strong or weak. We are keeping a close eye on this, and we'll continue to be publishing blog updates as we learn how the CRA's perceive how PBB can provide evidence that a community is taking a sustainable and responsible approach to resource allocation, basing decisions on the long-term health of the community in light of its values and priorities.

We're so pleased to share this report from the City of Chesapeake, Virginia upon city manager William Harrell's announcement that the rating agencies confirmed the City's strong ratings, based in part on the evidence of their long-term view.

"There is no question these are difficult times for governments at all levels," said Harrell. "The Chesapeake City Council has said time and again that we must keep our focus on our long term goals, while still maintaining the best quality of life for our citizens. These ratings provide clear evidence that we are indeed charting a sustainable course for the City's future."

"The three ratings are a testament to the conservative and forward-looking fiscal management leadership of Chesapeake's City Council and staff," said Harrell. "Achieving a ‘stable outlook,' given the current economic challenges facing cities locally and across the nation, speaks volumes to the hard work our staff and elected officials have done to strategically position Chesapeake for continued success."

See the full announcement at: http://www.cityofchesapeake.net/News-Room/Rating-Agencies-Reconfirm-City-Bond-Ratings_s1_p6025.htm

And read the coverage in the Virginian Pilot at: http://hamptonroads.com/2011/08/chesapeakes-bond-ratings-remain-stable-manager-says