What the Neighbors are Doing: Manassas City's Credit Gets Upgraded

The City of Manassas' credit rating has improved and it's mostly due to cuts in operation costs during the recession and a larger tax base.

"The removal of the negative outlook reflects the improvement in the city's financial position due to operating adjustments made to alleviate fiscal pressures over the past two fiscal years to maintain solid reserve levels," according to a release issued in late June by Moody’s Investor Service.

recently said the council has worked hard the last four years to weather the economic storm and work with a "starvation budget."

He said the council had to take a number of "unpleasant" tasks to survive, including cutting staff and freeze wages, but it a paid off.

"Our bond rating has actually improved a little bit, unlike many cities in the country," Way said.

In January, Moody's lowered Manassas Park's credit rating two levels to A3 from A1, partially because of the city’s high debt burden and significantly limited financial flexibility.

The upgrade is affirmed by the Aa1 rating on the city's "manageable" $56.4 million outstanding General Obligation debt, given the city's moderately-sized tax base that has begun to show signs of recovery, despite declining significantly in the past. 

Also reflected in the new, improved rating is the city's above-average socio-economic profile and the idea that the city will be able to remain on solid financial footing in the near future, according to the release.

Manassas City Mayor Harry J. Parrish ll cited as something that helps keep the city on solid economic footing, but said there's still a need for increased economic development in the city. He said he is optimistic with commercial and

Along with economic development, some other challenges the city may face are continually rising costs related to health care benefits and pension and the  impact future federal budget cuts have on the region, the release said.