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Thu December 4, 2008
Report shows Commerce financially stable
By Scott Harvey
Commerce – A recent report from Standard and Poor's shows a rise in the financial stability rating for the City of Commerce.
The ratings are based on a city's relatively low property taxes; stable, if not growing, sales tax revenues; coupled with at least adequate financial policies. The study also takes into account the balance between a city's location, size and economic opportunity.
Ratings indicate Commerce jumped from a BBB+ rating, to an A rating. The A rating is characterized as stable. The report by S&P indicates the two biggest factors that drive the City's economy are Texas A&M University-Commerce and Tyco Healthcare Co. The study also notes Fiscal 2007 results show an ending fund balance of $3.7 million, 2008 results indicated a small surplus, and the fiscal 2009 budget is balanced.
Despite disruptions in the markets and national economy, Standard and Poor's believes that stability and sound management characterize many local governments and that most will successfully manage through current events.