Moody's Investors Services has assigned an A1 issuer to Euclid Public Library (EPL). The rating reflects the library's sound local economy in the Cleveland metro area, characterized by a growing $2.1 billion tax base and a weak median family income that is just over 60% of the US median. Despite some use of reserves for an upcoming renovation project, cash in the general fund will remain strong compared to operations because of a recent voter-approved levy and significant flexibility to adjust expenses. The general fund closed 2023 with cash reserves equal to nearly 30% of revenue, and a surplus of over $300,000 is budgeted for 2024.
The news came a week after EPL’s Fiscal Officer David Piskac and Director Kacie Armstrong traveled to Chicago to make a presentation at a bond rating meeting with Moody's Investment Services. Euclid's Mayor Kirsten Holzheimer Gail joined the meeting remotely. The ratings presentation covered an overview of the City by Mayor Holzheimer, a history of the library by Director Armstrong, and a presentation of the library’s financial details by Fiscal Officer Piskac. Moody’s issued the credit rating on May 2.
“I am thrilled by this rating and appreciate the continued support of Euclid residents” says Armstrong, “we also appreciate the support of Bond Counsel Mike Sharb from Squire Patton Boggs, Municipal Advisor Michael Prcela of Sudsina & Associates, and Bond Underwriter Bob Franz of Stifel Public Finance.” Piskac is also delighted. “I am excited to hear of the A1 rating and the support of Euclid residents to move forward with the renovation." Achieving this improved rating is a crucial step in the library’s renovation plans, it will allow the Euclid Public Library to officially secure the $13.5 million dollars needed for the renovation project.
Moody’s Investors Service is a leading provider of credit ratings, research, and risk analysis. The firm’s ratings and analysis track debt covering more than 120 sovereign nations, approximately 11,000 corporate issuers, 21,000 public finance issuers, and 72,000 structured finance obligations.
Click here to read the full Moody's Investment Service press release.