Monday, February 4, 2008

Some good news from Pleasant Prairie

The financial wizards are smiling on Pleasant Prairie.

The good news is that the village's bond rating -- essentially, its credit rating -- went up and just in time to finance and refinance a chunk of village debt. That's good news for taxpayers -- like getting a great rate on your mortgage.

The village board and administration deserves credit for keeping the village's financial house in good order.

A key component to this is adequate village reserves -- the money that the village sets aside. The issue of debt and reserves came up in Kenosha's mayoral candidate forum and well that it should.

In case anyone forgot, a tornado rolled through the city last month (the Kenosha News seems to focus more on the damage from Wheatland's tornado) and there will be a cost. That's the main reason a municipality has reserve funds. Deplete the reserves and not only will your cost of credit shoot up but that money won't be there when a disaster strikes.

Note that I said when, not if.

1 comment:

Village People said...

You could say that all the snow is draining the budget and is basically a minidisaster as it was not planned for at all. My only question is; who's paying for the coupon interest? I still don't understand why RecPlex is part of Village finances.