The city’s credit outlook is getting a boost.
Moody’s Investors Service in an opinion issued in mid-December has revised the city’s credit rating outlook to stable from negative.
The city’s general obligation debt rating remained at A3.
In revising the outlook Moody’s cited the city’s “demonstrated willingness to increase tax revenue rather than rely on one-time cash inflows to support ongoing operations.”
The city increased property taxes 27% in 2019. It has also seen an increase in earned income and business privilege tax revenues.
Mayor Ray O’Connell said, "I am extremely pleased with the most recent outlook news from Moody's. We have been working steadily to restore prudent fiscal practices to the city and this is evidence of that. I am hopeful that this will not be the last positive development from the credit rating agencies for the City of Allentown."
Finance Director Brent Hartzell said, “Moody’s decision is a strong affirmation for investors that Allentown is demonstrating disciplined, prudent management of its financial house and that the city will continue to do so.”
The city’s 2020 budget holds the line on property taxes.