ATLANTA - An individual receives a credit score. A government is assigned a credit rating.
The mayor of Atlanta announced the national credit rating agencies have upgraded the city's score to the highest in two decades. It is, in fact, the second highest score possible.
The rating translates into lower costs Atlanta must pay in interest for money the city borrows to fund initiatives.
Kasim Reed says it also means that taxpayers will get more bang for the buck on money already borrowed. With respect to infrastructure for example, the mayor says, the same commitment could mean extra street lights can be bought or sidewalks put in.
The mayor cited a number of reasons for the improvement. When Reed took office, the city had just over seven million dollars in reserve, a paltry amount for an emergency fund. Currently, there is one-hundred-fifty-one million in the city hall bank in reserves.
Another big factor, according to Reed, was tackling the city's pension obligation to current workers and retirees. He says the New York financiers like that Atlanta dealt with something that is causing heartburn for other cities and states.