Dec. 2011: CPA has long been a benefit to municipalities across the Commonwealth, and in the case of Northampton, that benefit contributed to a two-step upgrade in their city bond rating, from A+ to Aa2. The upgrade came just two weeks after Northampton voters rejected an attempt to revoke CPA with 70% of the electorate voting to keep the Act in place. This willingness to pay for municipal programs is one of the primary factors that Moody's Investors Services evaluates when considering a city or town's bond rating.
Aa ratings, the second-highest Moody's rating, "are judged to be of high quality and are subject to very low credit risk." The bond upgrade is expected to lower the cost of Northampton's upcoming bond for a CPA land purchase and a new police station. David Narkewicz, the mayor of Northampton, credited voters' decision to keep the Community Preservation Act as a major factor in the upgrade, saying that "despite tough economic times, Northampton residents have shown significant community support.”
For more detail, check out the articles below.
“Northampton’s bond rating upgraded,” Larry Parnass, The Daily Hampshire Gazette. November 29, 2011.
“Northampton benefits from good bond rating,” Fred Contrada, The Republican. November 30, 2011.